SINGAPORE: Palm oil faces a resistance at 2,074 ringgit per tonne, a break above which could lead to a gain to 2,103 ringgit.
The resistance is provided by the 76.4 percent projection level of an upward wave c from 1,979 ringgit. This wave is capable of travelling to 2,103 ringgit. However, its five-wave structure indicates it may also ends around 2,074 ringgit.
A failure to break 2,074 ringgit could cause a loss into a zone of 1,997-2,026 ringgit. Strategically, this target zone will be confirmed when palm oil breaks 2,056 ringgit, the nearest support.
On the daily chart, a temporary bottom has formed around a support at 1,967 ringgit, the 123.6 percent projection level of a downward wave (C) from 2,896 ringgit. The big white candlestick on Dec. 14 suggests that palm oil may still have the momentum to rise into 2,091-2,144 ringgit.
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