SINGAPORE: Palm oil may fall to 2,110 ringgit per tonne, as it has pierced below a support at 2,155 ringgit.
The support is provided by 38.2 percent retracement of the downtrend from 2,344 ringgit to 2,038 ringgit. It does not seem to hold, as it was tested again after triggering a weak bounce.
Strategically, a fall below the April 11 low of 2,148 ringgit could confirm a break below the support, and the next support at 2,110 ringgit will be targeted.
On the daily chart, it is confirmed that palm oil failed again to break a falling trendline. Either the downtrend from 3,202 ringgit is extending towards 1,967 ringgit, or the contract has to fall deeper to accumulate more momentum in testing the trendline again.
* 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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