SINGAPORE: Palm oil may retest a support at 3,465 ringgit, a break below which could cause a fall into 3,300-3,405 ringgit range.

The contract could be riding on a wave C from 3,720 ringgit, which is the third wave of a three-wave cycle from 3,888 ringgit.

This wave is capable of travelling to 3,148 ringgit, the 61.8% retracement of the uptrend from 2,691 ringgit to 3,888 ringgit.

The weak bounce triggered by the support at 3,465 ringgit could have completed around a falling trendline. The wave C may have resumed.

A break above 3,564 ringgit could lead to a gain into 3,600-3,646 ringgit. On the daily chart, the contract seems to have completed a pullback towards a resistance at 3,581 ringgit. It is expected to drop to 3,411 ringgit.

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