17 June 2019 (The Edge Markets MY) SINGAPORE : Palm oil may retrace into the range of RM1,965-1,986 per tonne as it failed to break a resistance at RM2,020.

The resistance is identified as the 61.8% projection level of a downward wave c from RM2,075. This wave looks incomplete. It is capable of travelling to RM1,931.

The bounce triggered by the support at RM1,965 looks like a pullback towards a pennant, which suggests a target below RM1,931.

A break above RM2,020 could lead to a gain to RM2,075. On the daily chart, the black candlestick forming on June 14 suggests a cautious market sentiment. The bounce triggered by the support at RM1,971 could have completed around a falling trendline.