SINGAPORE: Palm oil may test a support at 2,034 ringgit per tonne, a break below which could cause a loss to 1,967 ringgit.
The support is provided by the 114.6pc projection level of a downtrend from 2,896 ringgit.
The projection analysis reveals a resistance at 2,091 ringgit, the 107pc level, which stopped the bounce from the May 13 low of 1,960 ringgit.
A dark cloud cover pattern formed on the daily candlestick chart.
It confirms the completion of the gains from 1,960 ringgit.
A break above 2,091 ringgit could signal the extension of the bounce towards 2,144 ringgit.
On the hourly chart, palm oil failed twice to break a resistance at 2,122 ringgit, the 100pc projection level on a downtrend from 2,218 ringgit.
The depth of the fall from the May 21 high of 2,115 ringgit indicates a reversal of the short uptrend from 1,960 ringgit.
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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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