Palm oil neutral in RM2,140-2,191 range

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SINGAPORE (April 26): Palm oil may leave a neutral range of RM2,140-2,191 per tonne on Friday or next Monday, to complete its consolidation within a wedge.

The range is formed by the April 15 low and the 50% retracements on the downtrend from RM2,344 to RM2,038.

A break below RM2,140 could cause a loss to RM2,110, while a break above RM2,191 could lead to a gain to RM2,227.

The bias could be towards the upside, as the wedge could be broken down into three waves. Such a structure suggests a completion of the pattern.

Signals will be neutral on the daily chart as well, until palm oil leaves a range of RM2,144-2,246, formed by the 100% and the 86.4% projection levels on a downtrend from RM2,896.

(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.)