SINGAPORE: Palm oil may rise towards 6,423 ringgit per tonne, as it has found a support around 6,138 ringgit and climbed above a resistance at 6,233 ringgit.
The support is identified as the 100% projection level of a downward wave c.
The reaction of the market around this barrier suggests a completion of this wave.
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A retracement analysis on the fall from 7,229 ringgit reveals a support at 6,115 ringgit, a break below which may open the way towards 5,925 ringgit.
On the daily chart, the contract is struggling around a rising trendline.
This is the bulls’ last chance to resume the uptrend.
A break below the trendline support around 6,115 ringgit could confirm a continuation of the downtrend towards the April 1 low of 5,477 ringgit.