SINGAPORE (Nov 14): Palm oil is expected to drop to 2,196 ringgit per tonne, as it has broken a support at 2,225 ringgit.
The support was at the 50 percent Fibonacci retracement on the rise from the Oct. 16 low of 2,104 ringgit to the Nov. 3 high 2,345 ringgit. The next support will be at 2,196 ringgit, the 61.8 percent level. Wave pattern suggests an extension of the wave b which started at 2,345 ringgit.
A sudden surge above 2,233 ringgit would signal the break below 2,225 ringgit was false, and a rebound target at 2,253 ringgit, the 38.2 percent level, will be established accordingly.
** 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. **