SINGAPORE (Feb 7): Signals are mixed for Palm oil, as it has approached a resistance at RM3,089 per tonne again.
The resistance is identified as 100% Fibonacci projection level of an upward wave C from the Oct 6, 2016 low of RM2,538. A failure of the contract to overcome this barrier could cause a loss to the support at RM3,014.
A break above the resistance could lead to a gain to RM3,169. Even though palm oil has briefly pierced above RM3,089, a valid break could possibly be confirmed when it stands firm above this level.
(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.)