SINGAPORE (Nov 30): Palm oil is biased to break a support at 3,027 ringgit per tonne, and fall to the Nov 24 low of 2,983 ringgit.
The support is established by the 38.2% Fibonacci projection level of an upward wave C, the third wave of a three-wave cycle from 2,538 ringgit.
Palm oil approached the resistance at 3,093 ringgit three times, but still failed to overcome this barrier. Chances are it may retrace to 2,983 ringgit first before retesting the resistance.
A break above 3,093 ringgit could lead to a gain to 3,158 ringgit. - by Wang Tao, Reuters
(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.)