Palm oil may break resistance at 3,169 ringgit

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SINGAPORE (Jan 13): Palm oil is expected to test a resistance at 3,169 ringgit per tonne, with a good chance of breaking above this level and gaining more towards the next resistance at 3,219 ringgit.

These resistances are identified respectively as the 114.6% and the 123.6% Fibonacci projection levels of an upward wave C, the third wave of a three-wave cycle from the July 12, 2016 low of 2,186 ringgit.

A break above 3,169 ringgit will confirm not only a target at 3,219 ringgit, but also a bullish wedge, which suggests a higher target at 3,299 ringgit. Support is at 3,128 ringgit, a break below which could cause a loss to 3,089 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.)