SINGAPORE (July 15): Palm oil may rise to RM1,966 per tonne, as it could have bottomed around a support at RM1,929.
The support is identified as the 86.4% projection level of a downward wave c from RM2,059. The bounce from the July 10 low of RM1,916 and the bullish divergence on the hourly MACD suggest a completion of this wave.
The drop from the July 1 high of RM1,982 looks exhausted. It has been constantly disrupted by bounces. A decent bounce could be on the way.Advertisement
A break below RM1,929 could cause a loss limited to RM1,908. On the daily chart, palm oil has stabilised around a support at RM1,929, the 100% projection level of a downward wave C from RM2,118. Its repeated failures to break this support are resulting in a bounce towards RM1,971.
(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.)
Source : The Edge Markets