Friday, 13 November 2015 13:13
SINGAPORE: Palm oil may break a support at 2,319 ringgit per tonne, and fall more towards the next support at 2,232 ringgit, as a three-wave cycle from the Oct. 9 low of 2,216 ringgit has completed.
The completion has been confirmed by the division of the rise from the Oct. 27 low of 2,260 ringgit into five small waves that make up a bigger wave c, the final wave of the cycle.
A Fibonacci retracement analysis on the uptrend from the Aug. 25 low of 1,863 ringgit to the Sept. 29 high 2,460 ringgit reveals the support at 2,319 ringgit, the 23.6 percent level, which temporarily blocks the way towards the 38.2 percent level at 2,232 ringgit. Strategically, a drop to 2,310 ringgit could confirm a break below this support.
A rise to 2,351 ringgit could be limited to 2,373 ringgit, the 14.6 percent level.
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