SINGAPORE: Palm oil may break a support at 2,237 ringgit per tonne and fall towards the next support at 2,214 ringgit.
These supports are identified as the 76.4 percent and the 100 percent projection levels of a downward wave c from 2,311 ringgit. This wave looks incomplete. It may eventually travel to 2,214 ringgit.
The bounce triggered by the support at 2,237 ringgit is regarded as a pullback towards a rising trendline. The pullback could have completed.
A fall below 2,237 ringgit will not only cause a loss to 2,214 ringgit, but also confirm a break below a support at 2,249 ringgit, the 23.6 percent retracement on the uptrend from 1,940 ringgit to 2,344 ringgit.
Based on this retracement analysis, the wave c could extend to 2,190 ringgit. On the daily chart, the contract looks shaky around a support at 2,246 ringgit, the 86.4 percent projection level of a downward wave (C). A break below the support could open the way towards 2,144 ringgit.
A break above 2,285 ringgit (first chart) could lead to a gain to 2,316 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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