Palm oil (FCPOc3) may test a support at 4,513 ringgit per metric ton, a break below which could trigger a fall into the 4,466-4,485 ringgit range.
The market is riding a wave c, the third wave of a correction from 4,710 ringgit. This 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 4,536 ringgit, a break above which could lead to a gain into the 4,559-4,587 ringgit range.
On the daily chart, the contract is retesting the support at 4,524 ringgit, with a good chance of breaking below this level and falling toward 4,403 ringgit.
The fall may turn out to be shallower than expected, as the lower trendline of a rising triangle establishes support around 4,490 ringgit.
A stabilization could be followed by a rise toward 4,675 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 - 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.