Palm oil still targets RM2,316

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SINGAPORE (Feb 19): Palm oil may rise to RM2,316 per tonne, as it has broken a resistance at RM2,285.

The resistances is identified as the 14.6% retracement on the uptrend from RM1,940 to RM2,344. The next resistance will be at RM2,316, a break above which could lead to a gain to RM2,344.

A fall below RM2,274 could signal the break above RM2,285 was false, and the target at RM2,316 will be aborted.

A projection analysis on the daily chart reveals a similar target at RM2,321, the 76.4% level of a downward wave (C), following a failure of the contract to break the support at RM2,246.

(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.)