18.07.2018 (The Edge Markets MY) - SINGAPORE (July 18): Palm oil is expected to retest a support at 2,148 ringgit per tonne, as suggested by its wave pattern and a projection analysis.

The support is provided by the 300 percent projection level on a downtrend from 2,457 ringgit. The bounce triggered by this support seems to have ended around a resistance at 2,187 ringgit. It is classified as a pullback towards the July 12, 2016 low of 2,186 ringgit.

Even though the support disrupted the downtrend, there is no convincing signal of a trend reversal. Experience also indicates that a trend seldom reverses at its 300 percent projection level. Most likely, the current trend would extend further into the range of 2,084-2,109 ringgit.

The trend is driven by a wave C from 2,344 ringgit. A projection analysis suggests a target of this wave at 2,084 ringggit, its 100 percent projection level.

A break above 2,187 ringgit could lead to a gain into the range of 2,212-2,236 ringgit. – Reuters