SINGAPORE (Jan 29): Palm oil still targets RM2,351 per tonne, as it has stabilized above a former resistance at RM2,322. The resistance is identified as the 276.4% projection level on an uptrend from RM1,979. The next resistance will be at RM2,351, a break above which could lead to a gain to RM2,380. A bullish pennant suggests a similar target at RM2,390.
The target at RM2,351 has to be temporarily aborted should palm oil fall below RM2,322, as the fall would signal the break above this level was false.
On the daily chart, palm oil has more or less broken a resistance at RM2,321, the 76.4% projection level of a downward wave (C) from RM2,896. It is quite hopeful to rise towards RM2,431, which is pointed by a falling channel.
Strategically, it is safe to target RM2,431 only when price closes above RM2,321 on Tuesday.
(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.)