SINGAPORE: Palm oil may test a resistance at 2,150 ringgit per tonne, a break above which could lead to a gain to 2,180 ringgit.
The resistance is provided by the 138.2 percent projection level of an upward wave c from 1,979 ringgit. This wave has extended. It is expected to travel to 2,180 ringgit. An inverted head-and-shoulders developing from Nov. 21 has been confirmed, indicating a similar target.
The shallow correction triggered by the resistance at 2,150 ringgit seems to have ended around 2,103 ringgit. Palm oil may succeed in breaking 2,150 ringgit this time.
On the daily chart, the contract is bouncing towards the upper channel line around 2,200 ringgit. A break below 2,103 ringgit (first chart) could cause a loss to 2,074 ringgit.
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** 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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