SINGAPORE (Feb 2): Palm oil may test a resistance at RM3,089 per tonne, a break above which could lead to a gain to RM3,169.
The resistance is identified as the 100% Fibonacci projection level of an upward wave C from the Oct 6, 2016 low of RM2,538. The projection analysis also reveals a support at RM3,014, around which the correction from the Dec 19 high of RM3,202 may have ended.
The trendline rising from the July 12 low of RM2,186 remains intact, signalling the uptrend from this level has not reversed. A break below RM3,014 could cause a loss to RM2,959.
(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.)