SINGAPORE: Palm oil is expected to drop to 2,105 ringgit per tonne, as it has broken a support at 2,150 ringgit.
The support was provided by the 23.6 percent Fibonacci retracement on the rise from the Sept. 2 low of 1,914 ringgit to the Oct. 1 high of 2,223 ringgit. The next support will be at 2,105 ringgit, the 38.2 percent level.
A triangle that formed between Oct. 1 and Oct. 14 has been confirmed bearish, pointing to a similar target as well. A surge to 2,156 ringgit will signal the break below 2,150 ringgit was false and palm oil may rise further to 2,178 ringgit, the 14.6 percent level.
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.
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