SINGAPORE (Apr 8): Palm oil is expected to test a support at 2,175 ringgit per tonne, a break below which will lead to a further loss to the next support at 2,146 ringgit.
These two supports are identified respectively as the 76.4 percent and the 86.4 percent Fibonacci retracements on the rise from the Jan. 30 low of 2,106 ringgit to the March 4 high of 2,400 ringgit.
The depth of the fall from the April 6 high of 2,250 ringgit signals a completion of the rebound from the March 18 low of 2,128 ringgit and the resumption of the downtrend from 2,400 ringgit.
Resistance is at 2,218 ringgit, the 61.8 percent level, a break above which could lead to a further gain to 2,253 ringgit, the 50 percent level.
** 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