SINGAPORE (July 19): Palm oil still targets RM2,001, as suggested by a projection analysis.
A three-wave cycle from RM2,115 has ended around a support at RM1,908, the 100% projection level of a downward wave c from RM2,059.
The bounce triggered by this support has extended above a falling trendline. A moderate pullback towards this line has completed and the bounce resumed.
The contract has more or less broken a resistance at RM1,984. The next resistance is at RM2,001, a break above which could lead to a gain to RM2,023.
Support at RM1,966, a break below which could indicate the completion of the bounce from the July 10 low of RM1,916. A bearish target at RM1,944 will be established accordingly.
(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.)