SINGAPORE: Palm oil may drop more into a range of 4,006-4,052 ringgit per tonne, driven by a wave c. The fall on March 10 confirmed this wave. A projection analysis reveals a wide target zone from 3,931 ringgit to 4,052 ringgit.
The wave c also observes a set of projection levels on the uptrend from 3,849 ringgit.
The 100% projection level of 4,153 ringgit works as a resistance, a break above which may lead to a gain into 4,197-4,225 ringgit range.
On the daily chart, the contract failed to stabilise around the bottom of a wave 4.
It is likely to drop more towards the bottom of the wave 2 around 3,907 ringgit.
Once the contract drops to this low, it would be unlikely to resume the uptrend from 3,721 ringgit, as the drop would be confirmed as a continuation of the downtrend from the April 29 high of 7,229 ringgit.