SINGAPORE (Aug 21): Palm oil still targets a range of RM2,269-2,277 per tonne, as suggested by its wave pattern and a ratio analysis.
The contract has cleared a resistance at RM2,240, 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. A double-bottom forming around RM2,140 suggests a target around RM2,317 as well.
The next resistance will be at RM2,269, a break above which could lead to a gain to RM2,277, the 38.2% retracement on the downtrend from RM2,498 to RM2,140.
A projection analysis on the daily chart indicates a target at RM2,303, close to RM2,317, as palm oil has again climbed above a resistance at RM2,226, the 86.4% projection level of a downward wave (C).
A break below RM2,240 could cause a limited loss to RM2,224.
(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.)