SINGAPORE: Palm oil may test a support at 5,086 ringgit per tonne, a break below which could open the way towards 4,896 ringgit.

The contract is riding on a wave C from 6,698 ringgit.

This wave has travelled far below its 100% projection level of 5,394 ringgit.

It is expected to extend into a range of 4,588-4,896 ringgit.

Resistance is at 5,204 ringgit, a break above which may lead to a gain into a narrow resistance zone of 5,303-5,394 ringgit range.

Palm oil posts weekly decline of nearly 8pc

On the daily chart, a wave (c) from 7,229 ringgit is unfolding, which is travelling towards a range of 4,331-4,754 ringgit range.

A decent bounce may not occur until the contract drops to 4,754 ringgit.