SINGAPORE (Feb 4): Palm oil may fall into a range of RM2,256-2,274 per tonne, as its correction from the Jan 28 high of RM2,333 has not completed.
The correction consists of three waves. The third wave labelled c is unfolding towards the target zone, which is formed by the 223.6% and the 238.2% projection levels on an uptrend from RM1,979.
On the daily chart, the contract is falling towards RM2,246, after failing to overcome a barrier at RM2,321, the 76.4% projection level of a downward wave (C) from RM2,896.
A break above RM2,322 could lead to a gain to RM2,351.
(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.)