SINGAPORE: Malaysian palm oil would rise to 3,454 ringgit per tonne, as it has cleared a resistance at 3,300 ringgit.
The resistance is the 61.8 percent Fibonacci projection level of the current wave "c" target, based on the length of the wave "a" which rose from 3,148 ringgit to 3,282 ringgit.
Most importantly, the break above the resistance has in the meantime pushed palm oil above a descending trendline, confirming a bullish triangle which points to 3,454 ringgit over the next few trading sessions.
Retracement would be shallow, limited to 3,320 ringgit.
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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