SINGAPORE (Aug 15): Palm oil is biased to fall into a range of 2,165-2,179 ringgit per tonne, as it has completed a bounce, or the first round of this bounce from 2,140 ringgit.
The bounce could be broken down into three waves. The second wave labelled b ended at 2,179 ringgit, which may be approached. Once the contact drops to 2,179 ringgit, a break below the support at 2,192 ringgit will be confirmed.
The break will cause a loss to 2,165 ringgit, the 7 percent retracement on the downtrend from 2,498 ringgit to 2,140 ringgit.
However, a double-bottom forming around 2,140 ringgit presents a bullish signal that this bounce may extend. So long as palm oil stays above 2,140 ringgit, the possibility of the extended bounce will not be eliminated.
A break above 2,224 ringgit could open the way towards 2,277 ringgit. - Reuters