SINGAPORE (Feb 6): Palm oil may drop to a support at RM3,014 per tonne, following its failure to break a resistance at RM3,089.
The support and the resistance are identified respectively as the 86.4% and the 100% Fibonacci projection levels of an upward wave C from the Oct 6, 2016 low of RM2,538.
A break below RM3,014 will confirm the correction from the Dec 19, 2016 high of RM3,202 has extended towards RM2,959. A break above RM3,089 could open the way towards RM3,169.
(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.)