SINGAPORE: Palm oil may break a support of 3,646 ringgit per tonne, and fall into 3,481-3,583 ringgit range.
Despite its repeated attempts, the contract still failed to escape from a falling channel, which suggests a target of 3,481 ringgit.
A retracement analysis on the rise from this level reveals a support at 3,646 ringgit, which may temporarily stop the fall and trigger a moderate bounce.
Most likely, the bounce would be limited to 3,747 ringgit.
A further gain may be extended into 3,810-3,912 ringgit range. On the daily chart, the consolidation in the narrow range of 3,647 ringgit to 3,891 ringgit is ending, following the formation of two black candles between Sept. 15 and Sept. 19.
Palm oil reverses early gains
The downtrend from 4,495 ringgit is expected to extend towards 3,224 ringgit, as pointed by a falling trendline.