SINGAPORE: Palm oil may stabilize around a support at 4,588 ringgit per tonne, and test a resistance at 4,742 ringgit thereafter.
The bounce from 4,493 ringgit may extend. It could consist of three waves.
The wave c is unfolding towards 4,896-5,086 ringgit range.
These waves make up a bigger wave 4, which will be reversed by a downward wave 5.
The downtrend is expected to resume in the range of 4,896-5,086 ringgit.
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A break below 4,588 ringgit could open the way towards 4,267-4,398 ringgit range.
On the daily chart, the contract seems to be again stabilizing around a support at 4,543 ringgit.
The contract may consolidate in the range of 4,543-5,015 ringgit for one or two days before falling.