On the daily chart, a spinning top formed around a support at 3,274 ringgit on Monday. Even though it proved to be a failed reversal signal, it does suggest the fall is ending.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slid 42 ringgit, or 1.25%, to 3,308 ringgit ($817.60) during early trade.
On the daily chart, the drop triggered by the key resistance at 3,856 ringgit looks so decent that it suggests a completion the wave C from 2,691 ringgit.
On the daily chart, the drop triggered by the key resistance at 3,856 ringgit looks so decent that it suggests a completion the wave C from 2,691 ringgit.
The correction triggered by the resistance at 3,883 ringgit was driven by a wave 4, which may have ended around 3,679 ringgit, as suggested by its three-wave structure and the bounce from the Tuesday low of 3,690 riniggit.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange fell 20 ringgit, or 0.5%, to 3,810 ringgit ($942.60) a tonne in early trade.
"We should now see a reordering of trade in palm products. Malaysia will be the key origin for CPO, Indonesia, thanks to tax incentives, will lead exports of processed products," Fry said.