SINGAPORE (Jan 28): Palm oil may gain more to RM2,351 per tonne, as it has cleared a resistance at RM2,322. The resistance is identified as the 276.4% projection level on an uptrend from RM1,979. The bullish momentum proves to be much stronger than expected, as it easily drove the price above the former strong resistance at RM2,304.
Based on a bullish pennant, palm oil could surge to RM2,390. A realistic target would be RM2,351, a break above which could lead to a gain to RM2,380.
On the daily chart, palm oil has pierced above a resistance at RM2,321, the 76.4% projection level of a downward wave (C) from RM2,896. Once it stands firm above the resistance, a bullish target at RM2,431 will be established.
(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.)