11/01/2018 (The Edge Markets MY) - SINGAPORE (Jan 11): The palm oil third-month contract may retest a support at 2,577 ringgit per tonne, as suggested by its wave pattern and a Fibonacci retracement analysis.

The support is identified as the 86.4 percent projection level of a downward wave c. A small five-wave cycle from the Dec. 22, 2017 low of 2,417 ringgit has peaked around 2,645 ringgit. Unless the fifth wave labeled 5 extends, palm oil may slide more over the next few days.

The bearish divergence on the hourly MACD also suggests a small chance of a further gain above 2,645 ringgit, even though a double-bottom indicates a target around 2,705 ringgit.

A break above 2,645 ringgit could lead to a gain into the zone of 2,669-2,705 ringgit. – Reuters