SINGAPORE (July 24): Palm oil may break a support at 2,149 ringgit per tonne and fall to the next support at 2,123 ringgit, as its bounce from the July 13 low of 2,144 ringgit has completed.
The bounce was triggered by the support at 2,149 ringgit, the 76.4 percent projection level of a downward wave C from 2,348 ringgit.
After two attempts to extend above a resistance at 2,218 ringgit, the bounce eventually failed to overcome this barrier. The failure was followed by a resumption of the wave C, which may travel to 2,088 ringgit in its full capacity.
Immediate resistance is at 2,187 ringgit, a break above which could lead to a gain to 2,218 ringgit. - Reuters