SINGAPORE: Palm oil may retest a support at 3,782 ringgit per tonne, a break below could open the way towards 3,592 ringgit.
The downtrend observes closely a set of projection levels of the fall from 6,698 ringgit.
The support at 3,782 ringgit triggered a bounce, which seems to have ended around 4,090 ringgit.
A falling trendline points at target zone of 3,284 ringgit to 3,592 ringgit.
Palm oil may stabilize around 4,588 ringgit
A break above 4,090 ringgit may lead to a gain into 4,267-4,398 ringgit range. On the daily chart, a wave 5 is unfolding.
It has apparently extended, as it is much longer than the wave 1.
The long-shadowed hammer on Wednesday failed to be a reversal pattern.
It will only work effectively if the contract could close above 4,070 ringgit on Thursday.
Until the convincing reversal pattern appears, it is difficult to figure out the ending point of this wave.
The wise way is to simply follow the downtrend.