SINGAPORE: Palm oil may rise more to 2,144 ringgit per tonne, as suggested by a projection analysis and a falling channel.
The contract has more or less cleared a resistance at 2,091 ringgit, the 107% projection level of a downtrend from 2,896 ringgit. It may extend its gain to the next resistance at 2,144 ringgit. A falling channel indicates the same target as well.
A break above 2,144 ringgit would be a milestone in chart development, as it will strongly suggest the formation of a big double-bottom around 1,967 ringgit. This pattern developed from the Nov. 28, 2018 low of 1,966 ringgit. In the meantime, the break will open the way towards the range of 2,246-2,321 ringgit.
On the hourly chart, the contract has cleared a resistance at 2,085 ringgit, the 138.2% projection level on a downtrend from 2,218 ringgit. It is heading towards a range of 2,122-2,145 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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