SINGAPORE: Palm oil may retrace to 3,680 ringgit per tonne, following its failure to break a resistance at 3,807 ringgit.

The rise from 3,567 ringgit seems to have been driven by a wave C, which is supposed to travel into a wide range of 3,864-4,047 ringgit.

The pause of this wave around 3,807 ringgit, along with the following drop, suggests the completion of the first part of the wave C.

Theoretically, the current fall may extend to any level above 3,567 ringgit.

A small gap forming on Tuesday indicates a target of 3,680 ringgit.

A break above 3,807 ringgit could lead to a gain into 3,864-3,934 ringgit range.

Palm oil finishes lower as heavy crude losses weigh

On the daily chart, a resistance at 3,801 ringgit is working along with the one at 3,807 ringgit on the hourly chart to stop the rise.

Together, these resistances may force the contract to retrace to 3,686 ringgit, near 3,680 ringgit (hourly chart).