SINGAPORE: Palm oil may retest support at 2,142 ringgit per tonne, a break below which will lead to a further loss towards 2,055 ringgit.
Support is provided by the 38.2 percent Fibonacci retracement on the fall from the on June 25 high of 2,511 ringgit to the Sept. 2 low of 1,914 ringgit, blocking the way towards the 23.6 percent level at 2,055 ringgit.
The deep fall from the Sept. 30 high of 2,222 ringgit indicates the first leg of the rebound from 1,914 ringgit could be over.
The current second leg may further reverse the first leg.
A dip below the Oct. 2 low of 2,137 ringgit will confirm the break below support.
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.
Comments
Comments are closed.