SINGAPORE: Palm oil has found a support at RM2,367 per tonne, it may hover above this level or bounce into a range of RM2,403-2,420.
The support is provided by the 107% projection level of a downward wave c from RM2,494. After dropping below the Dec 14, 2017 low of RM2,418, palm oil is yet to pull back towards this level.
The support at RM2,367 could trigger such a pullback. In addition, the drop from RM2,494 could be too linear to sustain, it may be disrupted by a bounce.
After the pullback, the downtrend may resume, as a bearish wedge has been confirmed, suggesting a much lower target around RM2,310.
On the daily chart, palm oil has broken a key support at RM2,416, the 61.8% projection level of a big wave C from RM2,896.
The break has opened the way towards RM2,303.