SINGAPORE (Jan 9): Palm oil may fall into a range of RM2,121-2,150 per tonne, as it failed to break a resistance at RM2,198.
The resistance is provided by the 176.4% projection level of an upward wave c from RM1,979. It could have triggered a correction which may be equal to or shallower than the first correction from the Dec 20, 2018 high of RM2,200.
A break above RM2,198, which looks unlikely right now, could lead to a gain to RM2,245. On the daily chart, palm oil faces another resistance around RM2,180, which is established by a falling channel.
The basic reading on the signal is the channel remains intact. Most likely, palm oil will resume its downtrend within this channel, 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.)