Palm oil to drop more to 2,460 ringgit

SINGAPORE: Malaysian palm oil is expected to drop further to 2,460 ringgit per tonne, as it has fallen below a support at 2,510 ringgit.

The support is provided by the 38.2 percent Fibonacci retracement on the rise from the Jan. 17 low of 2,377 ringgit to the Jan. 31 high of 2,593 ringgit. The next one will be at 2,460 ringgit, the 61.8 percent level.

A good rebound from the current level is unlikely, as a strong bearish momentum has built up in the fall on Wednesday. Most likely palm oil will open lower today, and form a breakaway gap.

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