SINGAPORE: Palm oil may fall to 2,274 ringgit per tonne, as its uptrend from the Jan. 14 low of 2,134 ringgit may have reversed.
The reversal followed a failure to break the resistance at 2,351 ringgit, the 300 percent projection level of an uptrend from 1,979 ringgit.
A gap forming on the hourly chart was quickly filled. It turned out to be an exhaustion gap, which generally appears at the end of a trend.
On the daily chart, the contract is struggling around a resistance at 2,321 ringgit, the 76.4 percent projection level of a downward wave (C) from 2,896 ringgit. It looks too exhausted to rise more towards the former target at 2,431 ringgit, which is suggested by a falling channel.
A break above 2,322 ringgit (first chart) could lead to a gain to 2,351 ringgit.
Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
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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