SINGAPORE (March 1): Palm oil may fall further in a range of RM2,034-2,091 per tonne, as it has cleared a support at RM2,144.
The support is provided by the 100% projection level of a downward wave (C). The next support will be at RM2,091, a break below which could cause a loss to RM2,034.
The current sharp fall shows no sign of a pause. The most optimistic scenario to bulls could be a bounce around RM2,091. A bounce may be limited to RM2,144, now a resistance.
On the hourly chart, palm oil has broken a support at RM2,142, the 50% retracement of the uptrend from RM1,940 to RM2,344, it is heading towards RM2,094.
(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.)