SINGAPORE (Jan 20): Palm oil may test a support at RM3,089, as it failed to break a resistance at RM3,169 again.
The failure indicates an extension of the correction from the Dec 19 high of RM3,202. Three waves make up the correction. The third wave labeled c could be driving palm oil towards RM3,014, the 86.4% Fibonacci projection level of an upward wave C from the Oct 6, 2016 low of RM2,538.
A break below RM3,089 could cause a loss to RM3,014 while a break above RM3,169 will lead to a gain to RM3,219.
(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.)