Palm oil to drop to 2,822 ringgit/T

SINGAPORE: Malaysian palm oil has completed a rebound that started from the Oct. 6 low of 2,754 ringgit per tonne, and will fall to 2,822 ringgit.

The rebound has adopted an "a-b-c" corrective wave mode, with the wave "c" having traveled approximately the same length as the wave "a", as indicated by a Fibonacci projection analysis.

The contract could have resumed a long-term downtrend, and an immediate target will be 2,822 ringgit, the presumed wave "b" trough.

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.