27 May 2019 (The Edge Markets MY) SINGAPORE: Palm oil may bounce more to RM2,049 per tonne, as it has broken a resistance of RM2,026.

The resistance is identified as the 200% projection level of a downtrend from RM2,218. The next resistance will be at RM2,049, a break above which could lead to a further gain to RM2,063.

The current bounce may be short-lived, as the fall from the May 21 high of RM2,115 has adopted a five-wave mode, which means palm oil would eventually fall below its May 24 low of RM2,018.

Indeed, on the daily chart, another projection analysis suggests a lower target at RM1,967, the 123.6% projection level of a downtrend from RM2,896. The current bounce could be a pullback towards RM2,034.