This is the third wave of a three-wave cycle from the Sept. 20 low of 2,137 ringgit per tonne. It looks much weaker than expected, as it failed to overcome a barrier at 2,214 ringgit, its 61.8 percent projection level.
The wave (c) may extend, only if palm oil could stabilize around 2,190 ringgit and retest the resistance at 2,214 ringgit. Once palm oil falls to 2,153 ringgit, a pivotal support at 2,143 ringgit on the daily chart will not hold. A break below this level could open the way towards 2,091 ringgit, the 107 percent projection level of a downward wave (C).
Use EIKON news "Alerts" to get reports sent to your email box automatically. For guidance, click https://tmsnrt.rs/29exTKN
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.