23/12/2022 (Business Recorder) - Palm oil may test a support at 3,806 ringgit per tonne, with a good chance of breaking below this level and falling into 3,721-3,762 ringgit range.

The contract failed four times to break a resistance at 4,011 ringgit. The failures, along with the deep slide on Thursday, suggest a continuation of the downtrend from 4,300 ringgit.

The bounce from 3,721 ringgit adopted a three-wave mode. The wave c demonstrates a very exceptional structure which is a bit against the wave principle and guidelines. However, this structure works well to explain the sideways move over the past week.

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A break above 3,905 ringgit could lead to a gain into 3,942-4,011 ringgit range. On the daily chart, the contract closed below a support of 3,891 ringgit on Thursday.

The consolidation above this level and below a resistance at 4,070 ringgit looks convincingly over. The contract may carry on to build the right shoulder of an inverted head-and-shoulders. A slide towards 3,590 ringgit is highly expected.

https://www.brecorder.com/news/40216277/palm-oil-may-test-support-at-3806-ringgit