SINGAPORE (July 25): Signals are mixed for palm oil, as it failed to break a support at 2,149 ringgit per tonne.
The support is provided by the 76.4 percent projection level of a downward wave C from 2,348 ringgit. This seems to have resumed, as the bounce from the July 13 low of 2,144 ringgit has been almost reversed.
However, palm oil is managing to stabilize the support. The stabilization suggests an extension of the bounce towards the range of 2,187-2,218 ringgit.
Most likely, the contract will consolidate in the range for one day before seeking its next direction. A break below 2,149 ringgit could cause a loss to the zone of 2,088-2,123 ringit while a break above 2,187 ringgit could lead to a gain to 2,218 ringgit. - Reuters