The Edge Markets (29/11/2017) - SINGAPORE (Nov 29): The palm oil third month contract may fall into a range of 2,519-2,555 ringgit per tonne, as suggested by its wave pattern, a projection analysis and a trendline.

The range is formed by the 138.2 percent and the 123.6 percent projection levels of a downward wave C. The part of this wave from the Nov. 9 high of 2,837 ringgit consists of five small waves.

The fifth wave labelled 5 could travel the same distance as the first wave labelled 1, to extend to 2,555 ringgit. A falling trendline suggests a lower target at 2,519 ringgit.

A retracement analysis on the daily chart reveals that palm oil has broken a support at 2,606 ringgit. It is heading towards 2,537 ringgit.

Resistance is at 2,612 ringgit (first chart), a break above which could lead to a gain to 2,645 ringgit. – Reuters