SINGAPORE: Palm oil may slide further into a range of 2,256-2,274 ringgit per tonne, following its failure to break a resistance at 2,322 ringgit.
The resistance is identified as the 276.4 percent projection level on an uptrend from 1,979 ringgit. The failure to overcome this barrier has triggered a decent correction, which may develop further, after extending below the support at 2,304 ringgit.
The uptrend may resume when the contract reaches the target zone, as a bullish pennant suggests a target at 2,390 ringgit.
On the daily chart, palm oil failed to break a resistance at 2,321 ringgit, the 76.4 percent projection level of a downward wave (C) from 2,896 ringgit.
It seems that the contract is falling towards a support at 2,246 ringgit, which is slightly below the range of 2,256-2,274 ringgit.
A break above 2,321 ringgit could lead to a gain to 2,431 ringgit.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C 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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