SINGAPORE (Feb 13): Palm oil may bounce towards RM2,285 per tonne, as it has found a support at RM2,249.
The support is provided by the 38.2% retracement of the uptrend from RM1,940 to RM2,344. The fall from RM2,344 has not been accompanied by a decent bounce yet. Such a bounce may have been triggered by the support. Making this support stronger is another one at RM2,246, the 86.4% projection level of a downward wave (C) on the daily chart. At least, palm oil could consolidate above RM2,246 for one or two days.
A break below RM2,246 could open the way towards RM2,144.
(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.)