SINGAPORE (Sept 7): Palm oil may break a support at 2,274 ringgit per tonne and fall towards the next support at 2,245 ringgit.
These supports are identified respectively as the 61.8 percent and the 38.2 percent projection levels of an upward wave C from 2,197 ringgit. This wave could have completed its first part around a resistance at 2,305 ringgit.
The current part is driven by a small wave b. It is generally difficult to predict the bottom of a wave b. However, a rising channel does suggest a target around 2,245 ringgit, from which, the wave C will resume.
Should the contract manage to hover above 2,274 ringgit, it may gain further into the range of 2,305-2,322 ringgit, and the target at 2,245 ringgit has to be aborted. - Reuters