The Edge Markets (12/07/2019) - SINGAPORE (July 12): Palm oil still targets RM1,966 per tonne, as it could have reversed its downtrend at the July 10 low of RM1,916.

The drop from the July 1 high of RM1,982 looks exhausted. It has been constantly disrupted by bounces. A decent bounce could be around the corner. The bullish divergence on the hourly MACD suggests a due bounce as well.

Support is at RM1,929, a break below which could cause a loss limited to RM1,908. On the daily chart, palm oil found a strong support at RM1,929, the 100% projection level of a downward wave C from RM2,118.

This wave may temporarily end around either RM1,929 or extend to a much lower level of RM1,812. The longer it hovers above RM1,929, the more likely it bounces towards RM2,001.

(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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