Palm oil may retest support at 2,117 ringgit

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SINGAPORE (March 5): Palm oil may retest a support at 2,117 ringgit per tonne, a break below which could cause a loss to the next support at 2,094 ringgit.

The first support is provided by the 200 percent projection level of a downward wave c. The bounce triggered by this support has been driven by a wave d, the fourth wave of the downtrend from 2,344 ringgit.

The trend has been developing within a falling channel, which suggests a target around 2,035 ringgit - the 76.4 percent retracement of the uptrend from 1,940 ringgit to 2,344 ringgit.

On the daily chart, a medium-term downtrend from 3,202 ringgit remains steady. It is extending towards 1,967 ringgit, the 123.6 percent projection level of a downward wave (C). - Reuters