23.05.2019 (The Edge Markets MY) - SINGAPORE (May 23): Palm oil may test a support at RM2,034 per tonne, a break below that could cause a loss to RM1,967.

The support is provided by the 114.6% projection level of a downtrend from RM2,896. The projection analysis reveals a resistance at RM2,091, the 107% level, which stopped the bounce from the May 13 low of RM1,960.

A dark cloud cover pattern formed on the daily candlestick chart. It confirms the completion of the gains from RM1,960. A break above RM2,091 could signal the extension of the bounce towards RM2,144.

On the hourly chart, palm oil failed twice to break a resistance at RM2,122, the 100% projection level on a downtrend from RM2,218. The depth of the fall from the May 21 high of RM2,115 indicates a reversal of the short uptrend from RM1,960.