SINGAPORE (Feb 9): The palm oil third-month contract still looks neutral in a narrow range of RM2,481-2,520 per tonne, and an escape could suggest a direction.
The range is formed by the 14.6% and the 23.6% retracements on the downtrend from RM2,855 to RM2,417.
A break below RM2,481 could cause a loss to RM2,448, while a break above RM2,520 could open the way towards RM2,584.
The latest development of the chart shows that palm oil failed twice to break RM2,481. The failures suggest an upside bias.
(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.)