SINGAPORE (March 13): Palm oil may test a support at RM2,094 per tonne, as indicated by its wave pattern and retracement analysis.
The support is identified as the 61.8% retracement of the uptrend from RM1,940 to RM2,344. The contract has completed a pullback towards the former support at RM2,142, now a resistance. It is falling towards RM2,094.
Both RM2,142 and RM2,190 failed to work as supports. The current support may hold the fall and trigger a decent bounce.
Strengthening the support at RM2,094 is a similar one at RM2,091 on the daily chart, which is provided by the 107% projection level of a wave (C). These supports are expected to form a strong support range to stop the drop.
A break above RM2,142 may open the way towards RM2,190.
(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.)