Palm oil may test support at 2,462 ringgit

The Edge Markets (29/01/2018) - SINGAPORE (Jan 29): The palm oil third-month contract may test a support at 2,462 ringgit, as it has broken a higher support at 2,491 ringgit per tonne.

These supports are identified respectively as the 161.8 percent and the 176.4 percent projection levels of a downward wave (c).

It is hard to categorize the current fall from the Jan 24 high of 2,526 ringgit, as this fall could be either an extension of the downtrend from the Jan 9 high of 2,641 ringgit, or a simple correction against the rally from the Jan 19 low of 2,433 ringgit.

A break below 2,462 ringgit could cause a loss towards a range of 2,402-2,426 ringgit, while a break above 2,519 ringgit could lead to a gain to 2,555 ringgit. - by Wang Tao, Reuters

(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.)

(US$1 = 4.4430 ringgit)

https://www.theedgemarkets.com/article/palm-oil-may-test-support-2462-ringgit-0