The Edge Markets (10/07/2019) - SINGAPORE (July 10): Palm oil may test a resistance at RM1,966 per tonne, a break above which could lead to a gain to RM1,984.
The contract has found a support at RM1,929, the 86.4% projection level of a downward wave c from RM2,059. In the meantime, it has cleared a resistance at RM1,944. Chances are it may edge up further to test RM1,966.
A break could confirm a small double-bottom developing around RM1,929. The pattern will suggest target at RM2,001.
Signals are very mixed on the daily chart, as palm oil is stuck in a neutral range of RM1,929-1,971. The range is formed by the 100% and the 86.4% projection levels of a downward wave C from RM2,118. An escape could suggest a direction.
(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.)
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