Palm oil to rebound moderately to 3,004 ringgit/T

SINGAPORE: Malaysian palm oil is expected to rebound to 3,004 ringgit per tonne, as a five-wave cycle has completed on the fall from 3,144 ringgit to 2,917 ringgit.

A Fibonacci analysis on the fall reveals an immediate target at 3,004 ringgit, the 38.2 percent level.

But strategically, the rise to 3,004 ringgit will not make much sense in that it is still considered a rebound, and the disappointing part is a weak rebound may also stop around 2,980 ringgit.

A fall below 2,917 ringgit will confirm the resumption of a preceding medium-term downtrend.

Copyright Reuters, 2011