Thursday 28 Mar 2024
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SINGAPORE (March 1): Palm oil may break a resistance at 2,820 ringgit per tonne, and rise to the next resistance at 2,880 ringgit, as suggested by its wave pattern and a Fibonacci projection analysis. 

A five-wave cycle from the Feb 10 high of 3,135 has completed, as confirmed by the surge from the Tuesday low of 2,723 ringgit. 

A Fibonacci retracement analysis on the cycle reveals an immediate resistance at 2,820 ringgit, the 23.6% level, which blocks the way towards 2,880 ringgit. 

Before breaking the resistance and rising more, palm oil may retrace a bit to 2,783 ringgit, to partially fill the gap forming today. Strategically, a rise to 2,832 ringgit may confirm both a break above 2,820 ringgit and the target at 2,880 ringgit. - by Wang Tao, Reuters

(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.)

(US$1 = 4.4430 ringgit)

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