Palm oil still targets 2,426 ringgit

SINGAPORE: The palm oil third-month contract still targets 2,426 ringgit per tonne, as it is poised to break a support at 2,462 ringgit.

The support is provided by the 161.8 percent projection level of a downward wave C. The bounce triggered by the support was so weak that it ended around 2,491 ringgit. With palm oil approaching 2,462 ringgit again, it is likely to overcome this barrier and fall to 2,426 ringgit.

Bears should be cautioned that the downside could be rather limited, as the bullish divergence on the hourly RSI suggests an exhaustion of the downtrend and a due bounce.

A break above 2,491 ringgit could lead to a gain to 2,519 ringgit.

Use EIKON news "Alerts" to get reports sent to your email box automatically.

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. **