SINGAPORE: Palm oil may break a support at 2,110 ringgit per tonne and fall towards the support at 2,083 ringgit.
These supports are identified as the 23.6 percent and the 14.6 percent retracements on the downtrend from 2,344 ringgit to 2,038 ringgit. A wedge developing from the April 5 high of 2,235 ringgit has been confirmed, suggesting a target around 2,083 ringgit.
Strategically, the target at 2,083 ringgit will be confirmed when palm oil falls below its April 26 low of 2,104 ringgit, as the contract may pull back towards the lower trendline of the wedge if it maintains above 2,110 ringgit.
Once the contract falls to 2,083 ringgit, a break below a support at 2,091 ringgit on the daily chart will be confirmed. The break could open the way towards 2,034 ringgit, the 114.6 percent projection levels on a downtrend from 2,896 ringgit.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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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