SINGAPORE (June 7): Palm oil is expected to rise into a range of RM2,089-2,111 per tonne, as suggested by its wave pattern and a projection analysis.
The contract seems to be riding on a wave c, the third wave of a bigger wave C from RM1,993. Both of these waves have been unfolding within a wedge, the upper trendline of which points at a target around RM2,111, the 76.4% projection level of the wave C.
Support is at RM2,052, a break below which could cause a loss to RM2,030.
On the daily chart, the contract managed to stabilize around a support at RM2,034, the 114.6% projection level of a downtrend from RM2,896.
So long as palm oil stays above RM2,034, it may rise towards RM2,144. A break below RM2,034 could open the way towards RM1,967.
(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.)