23.08.2018 (The Edge Markets MY) - SINGAPORE (Aug 23): Palm oil may test a support at RM2,224 per tonne, a break below which could cause a loss to the next support at RM2,192.

These supports are identified respectively as the 23.6% and the 14.6% retracements of the downtrend from RM2,498 to RM2,140.

The current fall could be a part of a flat from the Aug 8 high of RM2,265, or a resumption of the downtrend from RM2,498. It does not look like a pullback towards a falling trendline.

The contract has cleared a resistance at RM2,240, the 38.2% projection level of an upward wave C from RM2,192. This wave is capable of travelling into the range of RM2,269-2,317. A double-bottom forming around RM2,140 suggests a target around RM2,317 as well.

Signals on the daily chart turned bearish as well, as palm oil failed twice to break a resistance at RM2,262, the 76.4% projection level of a downward wave (C) from RM2,855.

This wave (C) looks incomplete. It is expected to end around RM2,079. Resistance is at RM2,255, a break above which may lead to a gain to RM2,277.