SINGAPORE: Palm oil may drop to 3,420 ringgit per tonne, as suggested by a projection analysis. The contract has fallen sharply below the support of 3,569 ringgit.
The next support zone is from 3,420 ringgit to 3,494 ringgit. Under the current circumstances, it will be rather risky to guess the endpoint of this wave.
A better strategy is to follow the trend and wait for the reversal signal to emerge. Resistance is at 3,569 ringgit, a break above could lead to a gain into the 3,615-3,690 ringgit range.
On the daily chart, all the supports revealed by a retracement analysis on the uptrend from 3,220 ringgit failed completely. The support at 3,521 ringgit could be no exception.
From a long-term perspective, the current fall could be a continuation of the downtrend from the April 29, 2022 high of 7,229 ringgit.