SINGAPORE (June 17): Palm oil may retrace into the range of RM1,965-1,986 per tonne as it failed to break a resistance at RM2,020.
The resistance is identified as the 61.8% projection level of a downward wave c from RM2,075. This wave looks incomplete. It is capable of travelling to RM1,931.
The bounce triggered by the support at RM1,965 looks like a pullback towards a pennant, which suggests a target below RM1,931.
A break above RM2,020 could lead to a gain to RM2,075. On the daily chart, the black candlestick forming on June 14 suggests a cautious market sentiment. The bounce triggered by the support at RM1,971 could have completed around a falling trendline.
(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.)