SINGAPORE (Jan 24): Palm oil looks neutral in a range of 3,089-3,169 ringgit per tonne, and an escape could suggest a direction.
The range is formed by the 100% and the 114.6% Fibonacci projection levels of an upward wave C from the Oct 6, 2016 low of 2,538 ringgit. A break below 3,089 ringgit could cause a loss to 3,014 ringgit.
However, the bias seems to be towards the upside, as palm oil approaches the resistance at 3,169 ringgit again, following its two failures to overcome this barrier. The contract may succeed in breaking above 3,169 ringgit this time.
A break will definitely open the way towards the range of 3,219-3,299 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.)