SINGAPORE (Feb 1): Palm oil still targets a range of RM2,256-2,274 per tonne, as its correction from the Jan 28 high of RM2,333 has not completed.
The correction was triggered by a resistance at RM2,322, the 276.4% projection level on an uptrend from RM1,979.
Three waves make up the correction. The third wave labelled c is capable of travelling into the target zone. On the daily chart, the contract seems to be falling towards RM2,246, after failing to overcome a barrier at RM2,321, the 76.4% projection level of a downward wave (C) from RM2,896.
A break above RM2,322 could lead to a gain to RM2,351.
(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.)