SINGAPORE: Palm oil may retest a resistance at 2,227 ringgit, as it has stabilised around a support at 2,191 ringgit per tonne.
The support and the resistance are identified as the 50 percent and the 61.8 percent retracements of the downtrend from 2,344 ringgit to 2,038 ringgit.
The contract is due for a sharp move, as two trendlines are contracting to a point. Most likely, it could rise strongly, as it seems to be riding on a wave C from 2,038 ringgit, which is the third wave of a three-wave cycle from the Nov. 27, 2018 low of 1,940 ringgit.
On the daily chart, palm oil is poised to retest a resistance at 2,246 ringgit, the 86.4 percent projection level of a downtrend from 2,896 ringgit. A break could lead to a gain to 2,321 ringgit.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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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