The Edge Markets (07/11/2018) - SINGAPORE (Nov 7): Palm oil may test a support at RM2,099 per tonne, a break below which could cause a loss to RM2,075.

The support is provided by the 100% projection level of a downward wave C from RM2,265. This wave was disrupted by a bounce, which is classified as a pullback towards the Sept 20 low of RM2,137.

The pullback was a bit overdone. It has completed, as confirmed by the drop below RM2,137 on Monday. The wave C has resumed towards the zone of RM1,996-2,036.

On the daily chart, palm oil remains steady on a downtrend towards RM1,967, the 123.6% projection level of a big wave (C) from RM2,896. A big part of this wave has been developing within a falling channel, which suggests the target at RM1,967.

(Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.)

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