SINGAPORE: Malaysian palm oil is expected to retest a support at 2,136 ringgit per tonne, with a good chance of breaking this level and falling more towards 2,097 ringgit.
The support is provided by the 100 percent Fibonacci projection level of a downward wave (3)-3, which started at the July 19 high of 2,302 ringgit. The next support will be at 2,097 ringgit, the 123.6 percent projection level.
This wave is capable of traveling to 2,033 ringgit, its 161.8 percent projection level, as a result, the rebound triggered by the support at 2,136 ringgit could be brief and may have ended at 2,189 ringgit - a resistance provided by the upper channel line of a falling channel.
A rise above 2,200 ringgit may be capped at 2,210 ringgit.
No information in this analysis should be considered as being business, financial or legal advice. 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.
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