15 July 2019 (The Edge Markets MY) SINGAPORE : Palm oil may rise to RM1,966 per tonne, as it could have bottomed around a support at RM1,929.

The support is identified as the 86.4% projection level of a downward wave c from RM2,059. The bounce from the July 10 low of RM1,916 and the bullish divergence on the hourly MACD suggest a completion of this wave.

The drop from the July 1 high of RM1,982 looks exhausted. It has been constantly disrupted by bounces. A decent bounce could be on the way.

A break below RM1,929 could cause a loss limited to RM1,908. On the daily chart, palm oil has stabilised around a support at RM1,929, the 100% projection level of a downward wave C from RM2,118. Its repeated failures to break this support are resulting in a bounce towards RM1,971.