SINGAPORE (Jan 26): 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 above 3,169 ringgit could lead to a gain to 3,219 ringgit.
The contract has failed to break this resistance many times and there is a big question mark on whether palm oil would regain its bullish momentum and test the resistance once again.
A break below 3,089 ringgit could cause a loss to 3,014 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.)