SINGAPORE (April 16): Palm oil may fall to RM2,110 per tonne, as it has broken a support at RM2,155.
The support is identified as the 38.2% retracement of the downtrend from RM2,344 to RM2,038. The next support will be at RM2,110.
A trendline rising from RM2,038 was broken. The break confirms a reversal of the uptrend from this level. Three waves make up the trend. The second wave labeled b ended at RM2,095, which may be approached.
A break above RM2,155, now a resistance, could lead to a gain into the range of RM2,177-2,191. On the daily chart, palm oil is poised to break a support at RM2,144, the 100% projection level of a downtrend from RM2,896. The break could open the way towards RM2,091.
(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.)