Friday 29 Mar 2024
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SINGAPORE (March 6): Palm oil may temporarily end its current bounce around a resistance at 2,880 ringgit per tonne, and then test a support at 2,820 ringgit, as suggested by its wave pattern and a Fibonacci retracement analysis. 

The bounce from the Feb 28 low of 2,723 ringgit may comprise three waves. The first wave labeled a may peak around 2,880 ringgit, the 38.2% Fibonacci retracement of the downtrend from the Feb 10 high of 3,135 to 2,723 ringgit.

This wave will be partially reversed by a downward wave b, which could travel into the range of 2,783-2,820 ringgit. The third wave labeled c will then start, to drive the contract towards 2,929 ringgit.

A break above 2,880 ringgit could open the way towards 2,929 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) 

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