Palm oil may fall into RM1,931-1,952 range

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SINGAPORE (June 13): Palm oil may fall more into the range of RM1,931-1,952 per tonne, as suggested by its wave pattern and a projection analysis.

The range is formed by the 161.8% and the 138.2% projection levels of a downward wave c from RM2,075. After travelling below RM1,986, this wave has a better chance of extending into the target range.

A wedge/pennant also suggests a deep fall from the current level. A break above RM1,986 could lead to a gain limited to RM2,007.

On the daily chart, the contract is falling towards a support at RM1,939, the 123.6% projection level of a downward wave C from RM2,896. A break below the support could open the way towards RM1,826.

(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.)