Palm oil (FCPOc3) may test a support at 4,513 ringgit per metric ton, driven by a wave c.
As the third wave of a correction from 4,710 ringgit, the wave c is capable of travelling into a wide range of 4,440-4,513 ringgit. A rising trendline points at a target within the range, around 4,485 ringgit.
Resistance is at 4,587 ringgit, a break above which could lead to a gain to 4,632 ringgit. A further rise may suggest a continuation of the uptrend towards 4,710 ringgit.
On the daily chart, the bounce triggered by the support at 4,524 ringgit looks weak, as it failed to extend to the resistance at 4,675 ringgit.
The weakness, along with the current fall, indicates a break below 4,524 ringgit. The break would open the way towards 4,403 ringgit.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - a London Stock Exchange product.
** No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.