SINGAPORE: Palm oil may retest a support of 3,892 ringgit per tonne, a break below which could trigger a fall into a range of 3,810-3,856 ringgit. The bounce caused by the support seems to have ended below a resistance at 3,974 ringgit.
A downward wave c may have resumed. This wave has briefly travelled below its 100% projection level of 3,931 ringgit. Chances are it may extend into the 3,736-3,810 ringgit range. A break above 3,974 ringgit could lead to a gain into the 4,006-4,052 ringgit range.
On the daily chart, the contract found a support around 3,907 ringgit.
It is not very clear how the consolidation around this level is going to end.
The doji on Thursday may turn out to be a reversal pattern, followed by a decent bounce.
Palm oil may fall into 3,810-3,856 ringgit after bounce
However, signals on the hourly chart seem to indicate the other way.
A drop below the Thursday low of 3,892 ringgit could suggest a break below the trendline.
A close below this level on Friday could confirm the break.
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