18 Apr 2019 (Business Recorder) SINGAPORE: Palm oil may stabilize around a support at 2,191 ringgit per tonne and retest a resistance at 2,227 ringgit. The support and the resistance are identified as the 50 percent and the 61.8 percent retracements of the downtrend from 2,344 ringgit to 2,038 ringgit.

The current correction is expected to be shallower than the preceding one from the April 9 high of 2,232 ringgit. It is hard to pinpoint a level around which the current correction ends. The support at 2,191 ringgit appears to hold the fall. A break below it, however, could cause a loss to 2,155 ringgit.

On the daily chart, the bounce from April 16 low of 2,139 ringgit was due to a support at 2,144 ringgit, the 100 percent projection level of a downtrend from 2,896 ringgit. Based on this projection analysis, palm oil may rise to 2,246 ringgit.

Charts are not available in reports received in email box through “Alert”. To get charts, use the news code of to retrieve the original reports. 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.