Palm oil may break resistance at RM2,249

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SINGAPORE (Aug 8): Palm oil may break a resistance at RM2,249 per tonne, and rise towards the next resistance at RM2,287, as suggested by its a projection analysis and a double-bottom.

These resistances are identified respectively as the 38.2% and the 23.6% projection levels on a downward wave C from RM2,348.

The surge on Tuesday has confirmed a double-bottom forming around RM2,149. The pattern suggests a target at RM2,287.

On the daily chart, palm oil could have completed a downtrend from RM3,202. The trend consists of three waves. The third wave labelled (C) narrowly missed its ultimate target at RM2,120 twice. With palm oil having climbed above RM2,226, this target may never be fulfilled.

Support is at RM2,218, a break below which could cause a loss to RM2,187.

(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.)