SINGAPORE (March 12): Palm oil is expected to test a support at 2,094 ringgit per tonne, as indicated by its wave pattern and retracement analysis.
The support is identified as the 61.8 percent retracement of the uptrend from 1,940 ringgit to 2,344 ringgit. The previous supports at 2,190 ringgit and 2,142 ringgit, respectively the 38.2 percent and the 50 percent levels, failed to work. The failure has significantly increased the chance of the current support to hold the fall and trigger a decent bounce.
A similar support at 2,091 ringgit on the daily chart will help stop the fall. This support is provided by the 107 percent percent projection level of a wave (C).
A break below 2,091 ringgit could cause a loss to 2,034 ringgit. - Reuters