SINGAPORE (Feb 27): Palm oil may slide further into a range of RM2,142-2,154 per tonne, as suggested by its wave pattern and a Fibonacci ratio analysis.
The contract is riding on a wave c, which has briefly travelled below its 138.2% projection level at RM2,177. Chances are it may extend to RM2,154.
A retracement analysis on the uptrend from RM1,940 to RM2,344 reveals that palm oil has broken the 38.2% level at RM2,190. The contract is pulling back towards this former support, now a resistance.
The pullback may end around RM2,190, to be then followed by a resumption of downtrend towards RM2,142. On the daily chart, the contract may fall further to RM2,144, the 100% projection level of a downward wave (C).
A break above RM2,191 may lead to a gain limited to RM2,214.
(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.)