SINGAPORE: The palm oil third-month contract may fall to 2,426 ringgit per tonne, as it has pierced below a support at 2,462 ringgit.
The support was provided by the 161.8 percent projection level of a downward wave C. Generally, the 161.8 percent projection level works as a strong barrier. The wave C was supposed to somehow lose its momentum and pause around 2,462 ringgit.
Despite the bullish divergence on the hourly RSI, this wave shows no signs of slowing down. It seems to be unfolding towards 2,426 ringgit.
Should the contract open above 2,462 ringgit in the morning session of the day, the target at 2,426 ringgit will be temporarily aborted.
Resistance is at 2,491 ringgit, a break above which could lead to a gain to 2,519 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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