SINGAPORE (Feb 12): Palm oil may drop more to 2,247 ringgit per tonne, as it has broken a support at 2,289 ringgit.

The support was provided by the 23.6 percent Fibonacci projection level of a downward wave c, the third wave of a three-wave cycle that developed from the Jan. 15 high of 2,394 ringgit. This wave may eventually travel into a range of 2,136-2,178 ringgit, formed by the 76.4 percent and the 61.8 percent level.

The next support will be at 2,247 ringgit, the 38.2 percent level, a break below which will lead to a further loss to 2,213 ringgit, the 50 percent level.

** 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. **

Source : The Edge Markets