SINGAPORE (Aug 16): Palm oil may fall to RM2,165 per tonne, as an immediate support at RM2,192 does not seem to hold.
The support is provided by the 14.6% retracement on the downtrend from RM2,498 to RM2,140. The bounce triggered by this support was so weak, that it failed to extend above a resistance at RM2,224. The weakness suggests that the drop from the Aug 8 high of RM2,265 is not over yet. However, it will be rather difficult to predict how far the drop could extend. The drop could be a resumption of the downtrend from RM2,498, or a part of the bounce from RM2,140.
A break above RM2,224 could open the way towards RM2,277.
(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.)