SINGAPORE (May 15): Palm oil may test a resistance at RM2,034 per tonne, following its second failure to break a support range of RM1,940-1,967.
The range is formed by the Nov 27, 2018 low and the 123.6% projection level of a downtrend from RM2,896. A tiny double-bottom seems to be forming around RM1,967.
Once confirmed, this pattern would point at a target of RM2,091. The confirmation will be a break above RM2,034.
On the hourly chart, the contract has completed a five-wave cycle around a key support at RM1,967, the 261.8% projection level on a downtrend from RM2,218. It seems that palm oil is climbing towards RM2,049.
(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.)