SINGAPORE (April 3): Palm oil is expected to test a support at 2,638 ringgit per tonne, a break below which could cause a further loss to 2,609 ringgit.
The support is provided by the 100 percent Fibonacci projection level of a downward wave c, the third wave of a bigger wave (5) from the March 6 high of 2,898 ringgit.
The bullish divergence on the hourly MACD suggests that the downtrend has become very exhausted.
There might be a good chance of the support to hold. Resistance is at 2,665 ringgit, a break above which could lead to a gain to 2,685 ringgit.
A further gain above 2,685 ringgit will signal the completion of the wave c. - Reuters