SINGAPORE (Jan 23): Palm oil may test a resistance at RM2,274 per tonne, a break above which could lead to a gain to the next resistance at RM2,304. These resistances are identified as the 238.2% and the 261.8% projection levels on an uptrend from RM1,979.
A confirmed wedge has turned out to be a more bullish pennant, which suggests a target of RM2,390. This is in line with the technical readings on the daily chart.
Palm oil escaped from a falling channel. A duplicated channel indicates a target at RM2,431, which is slightly above RM2,390. These two targets will be temporarily aborted should the contract fall below RM2,246, the 86.4% projection level of a downward wave (C).
(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.)