26/01/2012 (Business Recorder) - Malaysian palm oil is expected to drop to 3,136 ringgit per tonne, as it could have completed a rebound from an hourly chart low of 3,103 ringgit.

The rebound has adopted an "a-b-c" corrective wave mode, indicating the preceding downtrend that started at the Jan. 3 high of 3,244 ringgit will eventually resume.

A Fibonacci retracement on the fall from 3,244 ringgit to 3,103 ringgit reveals the rebound from 3,103 ringgit has stopped exactly at 3,190 ringgit, the 61.8 percent level.

A rise above 3,190 ringgit could be capped at 3,206 ringgit, the 100 percent Fibonacci projection level of the wave "c".

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.