Tuesday, 04 August 2015 13:47
SINGAPORE: Palm oil may break a support at 2,052 ringgit per tonne and fall into a range of 1,997-2,031 ringgit, driven by a powerful wave C.
The support is provided by the 161.8 percent Fibonacci projection level of the wave C, the third wave of a three-wave cycle that developed from the June 8 high of 2,362 ringgit.
This wave may extend to a much lower level, as suggested by a head-and-shoulders that formed between April 28 and July 28. The wave C seems to be travelling faster, making the support at 2,052 ringgit look vulnerable.
A drop to 2,045 ringgit may confirm both a break below the support and the target range formed by the 200 percent and the 176.4 percent levels.
