SINGAPORE: Palm oil may break a support at 3,706 ringgit and fall towards the July 14 low of 3,489 ringgit.
The contract failed twice to break a resistance at 4,057 ringgit.
The failures suggest either a completion of the bounce from 3,489 ringgit or a prevailing bearish sentiment.
Even if the uptrend from 3,489 ringgit has only completed its first part and may extend at a later stage, the contract is likely to approach 3,489 ringgit again for forming a solid bottom before rising.
Palm oil closes nearly 3pc lower on bearish price outlook
Resistance is at 3,840 ringgit, a break above which may lead to a gain to 4,057 ringgit. On the daily chart, the attempt to escape from a narrow channel failed.
The downtrend from 6,698 ringgit may have resumed. It is expected to develop further in the channel.
Only a break above 4,070 ringgit could confirm the completion of a five-wave cycle from 6,698 ringgit.