Palm oil may break a support at RM2,249 per ton, and tumble to RM2,214.
The support is identified as the 23.6% retracement on the uptrend from RM1,940 to RM2,344. The bounce triggered by this support has been nearly reversed. The inversion flags a continuation of the drop from RM2,344.
The drop comprises of three waves. Up until now, just two have unfolded. The third wave named c is relied upon to make a travel to RM2,214, its 100% projection level.
Opposition is at RM2,285, a break above which could prompt an increase to RM2,316. On the daily chart, palm oil is ready to break a support at RM2,246 and tumble to towards RM2,144, the 100% projection dimension of a descending wave (C). -REUTERS