SINGAPORE: Palm oil may either consolidate within a narrow range of 2,099-2,122 ringgit per tonne, or bounce towards 2,145 ringgit.
The contract has found a support at 2,099 ringgit, the 123.6 percent projection level of a downward wave c from 2,218 ringgit. Generally, the 123.6 percent level does not work as a strong support. However, strengthened by another one at 2,095 ringgit, the bottom of a preceding wave (b), the support at 2,099 ringgit successfully held the fall.
Resistance is at 2,122 ringgit, a break above which could lead to a gain to 2,145 ringgit. It must be noted that the wave c is capable of travelling into the range of 2,063-2,085 ringgit. A break below 2,099 ringgit will signal the continuation of the wave c towards the range.
On the daily chart, a projection analysis on a downtrend from 2,896 ringgit reveals a support at 2,091 ringgit, the 107 percent level, which works together the two supports on the hourly chart to stop the fall.
A break above 2,144 ringgit will be a major achievement of bulls, and a target range of 2,246-2,321 ringgit will be established.
* 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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