Palm oil may test resistance at 3,169 ringgit

-A +A

SINGAPORE (Jan 18): Palm oil may test a resistance at 3,169 ringgit, as it has climbed above a wedge.

The resistance is provided by the 114.6% Fibonacci projection level of an upward wave C, the third wave of a three-wave cycle from the Oct 6 low of 2,538 ringgit.

A break above 3,169 ringgit will confirm the wedge to be a bullish continuation pattern, and a target at 3,299 ringgit will be established. Support is at 3,128 ringgit, a break below which could cause a loss to 3,089 ringgit. - by Wang Tao, Reuters

(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.)