SINGAPORE (Apr 2): Palm oil is poised to break a support at 2,146 ringgit per tonne and drop further to 2,106 ringgit, as indicated by a triangle and a Fibonacci retracement analysis.
The support is provided by the 86.4 percent Fibonacci retracement on the rise from the Jan. 30 low of 2,106 ringgit to the March 4 high of 2,400 ringgit. Palm oil has been hovering above this barrier for more than two weeks, consolidating within a triangle.
The lower trendline of the pattern has established a support around 2,146 ringgit as well. This pattern could be bearish, as it followed a downtrend. A drop to 2,140 ringgit will confirm a break below the support and the target at 2,106 ringgit.
** 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]]>