Palm oil may test support at 2,176 ringgit

SINGAPORE: Palm oil may test a support at 2,176 ringgit per tonne, a break below which could cause a loss to the next support at 2,161 ringgit.

These supports are identified respectively as the 23.6 percent and the 14.6 percent retracements on the downtrend from 2,303 ringgit to 2,137 ringgit.

The bounce from 2,137 ringgit was caused by the support at the July 25 low of 2,140 ringgit. The bounce will have a slim chance to extend, once palm oil falls to 2,161 ringgit.

On the daily chart, the contract may retest a support at 2,144 ringgit, the 100 percent projection level of a downward wave (C) from 2,896 ringgit. A break below this support could confirm the continuation of the downtrend towards 1,967 ringgit.