SINGAPORE (Aug 20): Palm oil may rise into a range of RM2,269-2,277 per tonne, as it has cleared a resistance at RM2,240.
The resistance was provided by the 38.2% projection level of an upward wave C from RM2,192. This wave is capable of travelling into the range of RM2,269-2,317.
Palm oil not only cleared the resistance at RM2,240, but also broke a trendline falling from RM2,498. This is a major victory of bulls.
A retracement analysis on the downtrend from RM2,498 to RM2,140 reveals that palm oil rose high above the 23.6% retracement at RM2,224, and has a better chance of gaining more to RM2,277. A double-bottom forming around RM2,140 suggests a target around RM2,317 as well. A break below RM2,224 cold cause a loss to RM2,192.
(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.)