SINGAPORE: Malaysian palm oil is expected to reverse a minor rebound from the Aug 16 low of 2,993 ringgit per tonne and fall back to this level.
A Fibonacci retracement on the preceding fall from 3,083 ringgit to 2,993 ringgit reveals a resistance at 3,049 ringgit, the 61.8 percent level, which could be the limit for a wave "a" rebound.
A downward wave "c" will start around 3,049 ringgit, and drive the contract to 2,993 ringgit, so as to complete an "a-b-c" cycle. Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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.
Copyright Reuters, 2011
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