20.09.2018 (The Edge Markets MY) - SINGAPORE (Sept 20): Palm oil may revisit its July 25 low of 2,140 ringgit per tonne, as it has broken a support at 2,162 ringgit. The support is identified as the 86.4 percent retracement of the uptrend from 2,140 ringgit to 2,303 ringgit. It is the last barrier towards 2,140 ringgit.

Palm oil is highly likely to pause around 2,140 ringgit and bounce towards 2,162 ringgit. But how far could the current downtrend extend once the contract breaks 2,140 ringgit? The answer is on the daily chart.

Palm oil is riding on a big wave (C) from 2,896 ringgit. This wave was disrupted by the support at 2,144 ringgit, which triggered the strong bounce from 2,140 ringit.

A break below 2,140 ringgit could cause a loss into the range of 2,034-2,091 ringgit, formed by the 114.6 percent and the 107 percent projection levels of the wave (C). – Reuters