Palm Oil May Trade 4,153-4,197 Ringgit Range

SINGAPORE:A break below 4,225 ringgit per tonne could lead to a drop into the 4,153-4,197 ringgit range for palm oil . The decline on Monday does not appear to be the second pullback in the direction of the high of 4,276 ringgit on January 3.

Instead, it could be a component of a significant correction toward wave IV’s bottom, which is approximately 4,153 ringgit.

The conclusion of a five-wave cycle beginning with the low of 3,849 ringgit on February 10 is suggested by the correction’s complexity and duration from the March 2 high of 4,425 ringgit.

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The 4,305 ringgit level serves as immediate resistance; a break above this level could open the door to the 4,341-4,385 ringgit range. The contract failed to break the resistance at 4,360 ringgit on the daily chart, so it is looking for support around 4,209 ringgit.

The February 2 low of 3,728 ringgit may serve as the starting point of a five-wave cycle for palm oil.

The contract may retrace significantly to 4,022 ringgit, as indicated by this wave count, which is significantly more bearish.