Palm oil may rise into RM2,269-2,277 range

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SINGAPORE (Aug 17): Palm oil may rise into a range of RM2,269-2,277 per tonne, as it has cleared a resistance at RM2,224.

The resistance was provided by the 23.6% retracement on the downtrend from RM2,498 to RM2,140. The bounce from RM2,140 seems to have extended towards the next resistance at RM2,277.

The contract is riding on a wave C from RM2,192. This wave is capable of travelling into the range of RM2,269-2,317, which is formed by its 61.8% and 100% projection levels.

Following the gains from the Aug 17 low of RM2,236, a double-bottom forming around RM2,140 holds its predication value again. It suggests a target around RM2,317.

A correction may be limited to RM2,224, now a support.

(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.)