01.11.2018 (The Edge Markets MY) - SINGAPORE (Nov 1): Palm oil may test support at 2,138 ringgit per tonne, with a good chance of breaking below this level and falling more to the next support zone of 2,099-2,122 ringgit.

The contract is riding on a wave C, the third wave of a presumed three-wave cycle from 2,303 ringgit. This wave is capable of travelling to 2,099 ringgit, its 100 percent projection level.

A break below 2,138 ringgit will be a milestone in the chart formation, as it will also be a break below a pivotal support at 2,144 ringgit on the daily chart, which is the 100 percent projection level of a big wave (C) from 2,896 ringgit.

For a few months, palm oil has been consolidating above 2,144 ringgit. The break will signal the continuation of a long-term downtrend towards 1,976 ringgit, which is indicated by a falling channel. – Reuters