SINGAPORE (Jan 17): Palm oil is poised to leave a wedge and develop a trend, as it is approaching the upper trendline of the pattern.
It looks like the contract is going to continue its uptrend. However, there is no guarantee on this, as only a break above a resistance at 3,169 ringgit could confirm the wedge, as a bullish continuation pattern, and an immediate target at 3,219 ringgit will then be established.
The resistance is provided by the percent Fibonacci projection level of a bigger wave C, which is the third wave of a three-wave cycle from the July 12, 2016 low of 2,186 ringgit.
Support is at 3,089 ringgit, a break below which could cause a loss towards 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.)