SINGAPORE: Palm oil may bounce more to 2,049 ringgit per tonne, as it has broken a resistance 2,026 ringgit.
The resistance is identified as the 200pc projection level of a downtrend from 2,218 ringgit.
The next resistance will be at 2,049 ringgit, a break above which could lead to a further gain to 2,063 ringgit.
The current bounce may be short-lived, as the fall from the May 21 high of 2,115 ringgit has adopted a five-wave mode, which means palm oil would eventually fall below its May 24 low of 2,018 ringgit.
Indeed, on the daily chart, another projection analysis suggests a lower target at 1,967 ringgit, the 123.6pc projection level of a downtrend from 2,896 ringgit.
The current bounce could be a pullback towards 2,034 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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