SINGAPORE: Palm oil may test support of 3,671-3,683 ringgit per tonne, a break below which could open the way towards the 3,577-3,613 ringgit range. The contract is riding on a wave c, which is heading towards its 100% projection level of 3,671 ringgit.
It is not very clear if a bounce could occur around this level.
The fierce characteristic of this wave suggests a slim chance of such a bounce. Once the wave c travels below 3,671 ringgit, it is likely to extend to 3,520 ringgit.
A break above 3,740 ringgit could lead to a gain to 3,797 ringgit.
On the daily chart, the two black candlesticks on Wednesday and Thursday strongly suggest a continuation of the downtrend from the March 2 high of 4,425 ringgit.
Palm oil may keep bouncing to 3,910 ringgit
Based on a projection analysis, the trend could at least extend to 3,408 ringgit.
An aggressive target is 3,055 ringgit.
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