SINGAPORE (June 27): Palm oil may fall to RM1,929 as it has broken a support at RM1,971 per tonne.
The support is provided by the 86.4% projection level of a downward wave C from RM2,235. Even though it is strengthened by other two supports at RM1,964 and RM1,960, respectively the June 12 low and the May 13 low, it still failed to hold the fall. The bears seem to be very determined to push the price lower.
A triangle has been more or less confirmed as a bearish continuation pattern, suggesting a further drop below RM1,929. A bounce above the Wednesday high of RM1,980 could be limited to RM2,001.
(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.)