SINGAPORE (April 7): Palm oil may rise 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 d, the fifth wave of a bigger wave (5). It seems that the wave (5) has been unfolding within a falling wedge, the upper trendline of which suggests a target zone of RM2,762–2,792. The rally was disrupted by a weak resistance at RM2,715, the 61.8% Fibonacci projection level of the third wave labeled c. The correction caused by this barrier is expected to end around RM2,685 or RM2,665. The downtrend may resume when the current wave d peaks around RM2,762.
(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.)