18/01/2018 (The Edge Markets MY) - SINGAPORE (Jan 18): The palm oil third-month contract may test a support at 2,462 ringgit per tonne, a break below which could cause a loss to 2,426 ringgit.

The support is identified as the 161.8 percent projection level of a downward wave (c). The drop from the Jan. 9 high of 2,641 ringgit could be broken down into five waves. This structure indicates a bounce is due.

The bullish divergence on the hourly RSI seems to be suggesting an exhaustion of the fall as well. It is doubtful if palm oil could break 2,462 ringgit and fall more.

A rise to 2,000 could be extended into the range of 2,519-2,555 ringgit. – Reuters