SINGAPORE (June 18): Palm oil may rise to RM2,068 per tonne as it has broken a resistance at RM2,028.
The current bounce seems to be against the downtrend from RM2,235. A retracement analysis on the trend reveals a resistance at RM2,028, the 23.6% level.
The break above this barrier has opened the way towards RM2,068. However, this target has to be temporarily aborted should the contract open below RM2,028 on Tuesday, as such a move could signal the break above RM2,028 was false.
On the daily chart, the contact is expected to test a resistance RM2,046, the 61.8% projection level of a downward wave C from RM2,235. A break could lead to a gain into a range of RM2,068-2,082 (refer to the first chart).
(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.)