02/05/2017 (The Edge Markets) - SINGAPORE (May 2): Palm oil may test a support at RM2,477 per tonne, a break below which could cause a loss to RM2,450.

The support is identified as the 7% Fibonacci retracement on the downtrend from the March 22 high of RM2,839 to the April 19 low of RM2,450. The bounce from this low may have completed, as indicated by its three-wave structure and the drop from the April 27 high of RM2,545.

Resistance is at RM2,507, a break above which could signal the extension of the bounce towards the range of RM2,542–2,599.

(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.)