SINGAPORE (Dec 5): The palm oil third-month contract may fall into a range of 2,519 ringgit to 2,555 ringgit per tonne, as suggested by its wave pattern and a Fibonacci projection analysis.
The downtrend from the Oct 30 high of 2,855 ringgit consists of five waves. So far, only four have completed. The fifth wave could be travelling towards a range of 2,462 ringgit-2,519 ringgit, formed by the 161.8% and the 138.2% projection levels of a bigger wave C.
Strategically, the target zone of 2,519-2,555 ringgit will be confirmed, when palm oil breaks the support at 2,577 ringgit. Resistance is at 2,612 ringgit, a break above which could lead to a gain to 2,645 ringgit. - by Wang Tao, Reuters
(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.)
(US$1 = 4.4430 ringgit)