SINGAPORE (Jan 11): Palm oil may break a support at RM2,150 per tonne, and fall to the next support at RM2,121.
These supports are identified respectively as the 138.2% and the 114.6% projection levels of an upward wave c from RM1,979.
Palm oil failed twice to break a resistance at RM2,198. These failures suggest the formation of a range from RM2,103 to RM2,198.
A trendline rising from RM1,940 indicates the current fall may extend to RM2,103. A break above RM2,180, could lead to a gain into a zone of RM2,198-2,227.
On the daily chart, palm oil failed again to rise above a falling channel. The failure may result in a resumption of the downtrend towards RM1,967.
(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.)