SINGAPORE: Palm oil may bounce into a range of 2,403-2,420 ringgit per tonne, as suggested by a projection analysis and the hourly RSI.
The contract is riding on a wave c, which has been disrupted by two bounces around 2,367 ringgit and 2,347 ringgit, respectively the 107 percent and the 123.6 percent projection levels of a downward wave c.
These two bounces signal a dissipation of the bearish momentum. The bullish divergence on the hourly RSI confirms an exhaustion of the wave c.
On the daily chart, palm oil has broken a key support at 2,416 ringgit, the 61.8 percent projection level of a big wave C from 2,896 ringgit.
The break has opened the way towards 2,303 ringgit. Palm oil may resume its downtrend after the bounce ends in the target zone.
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.