SINGAPORE (April 6): Palm oil is expected to gain more into the range of RM2,739–2,762 per tonne, as suggested by its wave pattern and a wedge. The contract could be riding on a wave (5), the fifth wave of a five-wave cycle from the Jan 18 high of RM3,175. This wave may comprise five smaller waves that are confined within a falling wedge.
The fourth wave labeled d is driving palm oil towards the range formed by the 50% and the 38.2% Fibonacci projection levels of the preceding wave c. Support is at RM2,685, a break below which could cause a loss into the range of RM2,638–2,665.
(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.)