SINGAPORE: Palm oil is expected to fall more to 2,298 ringgit per tonne, as it has broken below a support at 2,328 ringgit.
The support was provided by the 76.4 percent Fibonacci projection level of a downward wave 3, which started at the July 7 high of 2,424 ringgit.
The next support will be at 2,298 ringgit, the 100 percent projection level, a break below which will open the way towards 2,250 ringgit, the 138.2 percent level.
A sudden surge above 2,328 ringgit will indicate a false break below this level, and a rebound target at 2,346 ringgit, the 61.8 percent level, will be established.
The views expressed are his own.
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