04.03.2021 (www.brecorder.com) –

• The wedge will be confirmed when the contract falls below 3,581 ringgit.

SINGAPORE: Palm oil may bounce into a range of 3,713-3,752 ringgit per tonne before falling, as suggested by its wave pattern and a projection analysis.

The rally from the Jan. 20 low of 3,160 ringgit could have completed. It was driven by a wave B, the second wave of a big flat developing from the Jan. 6 high of 3,888 ringgit. This wave will be totally reversed by the current wave C.

However, the contract stabilized around a support at 3,624 ringgit. It is likely to bounce a bit further before falling again.

A break above 3,752 ringgit could indicate the extension of the uptrend towards 3,801-3,888 ringgit range, while a break below 3,624 ringgit could cause a fall to 3,545 ringgit.

On the daily chart, the contract has escaped from a rising wedge, which looks like a bearish pattern.

The wedge will be confirmed when the contract falls below 3,581 ringgit.

A break above 3,698 ringgit may not necessarily lead to a gain to 3,856 ringgit.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.