SINGAPORE (Feb 7): The palm oil third-month contract remains neutral in a range of RM2,448-2,520 per tonne, and an escape could suggest a direction.
The range is formed by the 7% and the 23.6% retracements on the downtrend from RM2,855 to RM2,417.
A break below RM2,448 could cause a loss to RM2,417, while a break above RM2,520 could open the way towards RM2,584.
The bias could be towards the downside, as the contract has broken below RM2,481. A sudden rise above this level could be extended to RM2,520.
(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.)