SINGAPORE: Palm oil may slide further into a range of 2,142-2,154 ringgit per tonne, as suggested by its wave pattern and a Fibonacci ratio analysis.
The contract is riding on a wave c, which has briefly travelled below its 138.2 percent projection level at 2,177 ringgit. Chances are it may extend to 2,154 ringgit.
A retracement analysis on the uptrend from 1,940 ringgit to 2,344 ringgit reveals that palm oil has broken the 38.2 percent level at 2,190 ringgit. The contract is pulling back towards this former support, now a resistance.
The pullback may end around 2,190 ringgit, to be then followed by a resumption of downtrend towards 2,142 ringgit. On the daily chart, the contract may fall further to 2,144 ringgit, the 100 percent projection level of a downward wave (C).
A break above 2,191 ringgit (first chart) may lead to a gain limited to 2,214 ringgit.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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. **
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