SINGAPORE (March 4): Palm oil may extend its bounce into a zone of RM2,214-2,237 per tonne, as suggested by a projection analysis.
The bounce was caused by a support at RM2,117, the 200% projection level of a downward wave c. A falling channel suggests a target around RM2,214.
The bounce looks too sharp too sustain. It may end around RM2,214 or RM2,237. On the daily chart, a support at RM2,144 helped trigger the current bounce, which may be limited to RM2,246, the 86.4% projection level of a downward wave (C).
Support is at RM2,177, a break below which could cause a loss into a range of RM2,117-2,154.
(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.)