18/08/2022 (Business Recorder), Singapore - Palm oil is poised to break a support at 4,085 ringgit and fall towards the next support at 3,857 ringgit per tonne.

The contract is consolidating within a rising channel.

Following its failure to rise above a channel, it is expected to fall towards the lower channel line support around 3,857 ringgit.

The bounce triggered by the support at 4,085 ringgit has been mostly reversed.

The reversal signals a continuation of the fall towards 3,857 ringgit.

A break above 4,269 ringgit may lead to a gain to 4,452 ringgit.

On the daily chart, the contract seems to be riding on a wave (5), the final wave of a five-wave cycle from 7,229 ringgit.

Malaysian palm oil futures up

This wave is expected to travel below the July 14 low of 3,489 ringgit.

A realistic target is 3,891 ringgit. A break above 4,331 ringgit could signal the continuation of the uptrend towards 4,543 ringgit.

https://www.brecorder.com/news/40192339/palm-oil-to-fall-to-3857-ringgit