SINGAPORE (Dec 14): Palm oil may gain further into a range of 2,074-2,103 ringgit per tonne, as suggested by its wave pattern and a projection analysis.
The bounce from the Nov. 27 low of 1,940 ringgit consists of three small waves. The current wave c is expected to end around either 2,056 ringgit or 2,103 ringgit, respectively its 61.8 percent and 100 percent projection levels.
This wave is likely to extend to 2,103 ringgit, as suggested by a possible inverted head-and-shoulders that developed from Nov. 21.
A break below 2,026 ringgit may cause a loss to 1,997 ringgit. On the daily chart, a temporary bottom is forming around a support at 1,967 ringgit, the 123.6 percent projection level of a downward wave (C) from 2,896 ringgit. The contract seems to be edging up towards 2,144 ringgit. - Reuters