SINGAPORE: Malaysian palm oil will fall into a range of 2,390-2,507 ringgit per tonne over the next three months, as indicated by its wave pattern and a Fibonacci projection analysis.
A downtrend that started at the February high of 3,967 ringgit has not been violated by a sharp rebound to 3,270 ringgit in November.
The rebound was triggered by a support at 2,762 ringgit, the 38.2 percent Fibonacci projection level of a downward wave (C).
The current wave (C) is the second downward leg of a corrective wave cycle that started at 4,486 ringgit, and will be able to travel to 2,390 ringgit, the 50 percent Fibonacci projection level.
The wave (C) could be further broken down into three waves labeled as "A-B-C", with the wave "B" having completed at 3,270 ringgit, between the 38.2 percent and the 50 percent Fibonacci retracements on the fall from 3,967 ringgit to 2,754 ringgit.
The wave "C" has started towards 2,507 ringgit, the 61.8 percent Fibonacci projection level, based on the length of the wave "A" and the peak of the wave "B" at 3,270 ringgit.
A rise above 3,270 ringgit will violate the bearish outlook.
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.
Comments
Comments are closed for this article.