SINGAPORE (Jan 19): Palm oil may rise to 3,219 ringgit, as suggested by a bullish wedge and a Fibonacci projection analysis.
The pattern has been confirmed, as palm oil has climbed above its upper trendline. It suggests a target at 3,299 ringgit. A more realistic target could be 3,219 ringgit, the 123.6 percent Fibonacci projection level of an upward wave C, which is the third wave of a three-wave cycle from the Oct 6 low of 2,538 ringgit.
Strategically, a rise to 3,180 ringgit is needed to confirm the target at 3,219 ringgit. Support is at 3,218 ringgit, a break below which may cause a big loss to 3,014 ringgit. - by Wang Tao, Reuters
(Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.)