Technicals Palm oil may seek support around 2,342 ringgit

• Technicals
  

Palm oil may seek support around 2,342 ringgit

By Reuters / Reuters   | July 5, 2016 : 12:43 PM MYT 

[size=16]SINGAPORE (July 5): Palm oil may seek a support around 2,342 ringgit per tonne and then retest a resistance at 2,402 ringgit, as suggested by its wave pattern and a Fibonacci retracement analysis.

The support and the resistance are identified respectively as the 7% and the 23.6% Fibonacci retracements on the downtrend from the June 7 high of 2,677 ringgit to the June 29 low of 2,317 ringgit.

This trend could be broken down into five small waves, signalling palm oil has temporarily bottomed around 2,317 ringgit.

A break below 2,342 ringgit may cause a loss limited to 2,317 ringgit, while a break above 2,370 ringgit, the 14.6% level, could confirm the extension of the bounce from 2,317 ringgit towards 2,402 ringgit. - by Wang Tao, Reuters

[size=12](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.)
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