SINGAPORE: Palm oil may fall towards 5,394 ringgit per tonne, to fulfil this ultimate target.
This target is identified as the 100% projection level of the wave C from 6,698 ringgit.
It is the lowest point this wave could travel to.
To put it another way, the downside would be very limited. This wave could end above 5,394 ringgit as well.
Resistance is at 5,702 ringgit, a break above which could lead to a gain to 5,892 ringgit.
Palm oil neutral in 5,702-5,892 ringgit range
On the daily chart, another projection analysis reveals a slightly higher target of 5,438 ringgit, the 100% level of a wave (c) from 7,229 ringgit.
It would be very difficult for this wave to travel below the support at 5,438 ringgit, which is strengthened by another one at 5,477 ringgit.
Most likely, the downtrend could reverse in the range of 5,394-5,438 ringgit (hourly chart).
Source: Brecorder
