Thursday 28 Mar 2024
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SINGAPORE (March 3): Palm oil is expected to test a support at RM2,820 per tonne, as it could have completed the first round of the bounce from the Feb 28 low of RM2,723.

A Fibonacci retracement analysis on the downtrend from the Feb 10 high of 3,135 to RM2,723 reveals the contract failed to touch the resistance at RM2,880, the 38.2% level.

The failure strongly indicates a completion of the bounce from RM2,723, which has been driven by a wave a, the first wave of a presumed three-wave cycle.

The current wave labelled b is travelling towards RM2,783.

A further gain from the current level may be limited to RM2,880, a break above which, however, could open the way towards RM2,929.

(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.)

 

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