SINGAPORE (June 10): Palm oil may break a support at RM2,019 per tonne and fall into a range of RM1,960-1,997.
The support is provided by the 61.8% retracement of the uptrend from RM1,960 to RM2,115. The uptrend has reversed, as confirmed by a break below a falling trendline.
Wave pattern shows that palm oil is riding on a wave c from RM2,075. This wave is capable of travelling to RM1,986, its 100% projection level.
Once the contract falls to RM1,986, the break below RM1,997 will be confirmed. This break could open the way towards RM1,960.
A break above RM2,038 may lead to a gain into the range of RM2,056-2,078.
(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.)