The contract is riding on a wave c, which has been disrupted by two bounces around 2,367 ringgit and 2,347 ringgit, respectively the 107 percent and the 123.6 percent projection levels of a downward wave c.
These two bounces signal a dissipation of the bearish momentum. The bullish divergence on the hourly RSI confirms an exhaustion of the wave c.
On the daily chart, palm oil has broken a key support at 2,416 ringgit, the 61.8 percent projection level of a big wave C from 2,896 ringgit.
The break has opened the way towards 2,303 ringgit. Palm oil may resume its downtrend after the bounce ends in the target zone.
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