SINGAPORE: Palm oil may test a support at 3,717 ringgit per tonne, a break below could open the way towards 3,489-3,598 ringgit range. The contract started a bounce earlier than expected, which was supposed to occur around 3,717 ringgit.
This earlier bounce, however, has little impact on the downtrend from $4,306 ringgit, as palm oil seems to have turned around to fall towards 3,717 ringgit.
Resistance is at 3,973 ringgit, a break above may lead to a gain into 4,085-4,269 ringgit range. On the daily chart, the whole downtrend from 7,229 ringgit has resumed. The trend consists of five waves.
Palm ends two-session decline; changes in Indonesia export tax cap gains
The final wave, the wave (5), is unfolding towards 2,540-2,963 ringgit range, as pointed by a falling trendline.