Business Recorder (26/08/2019) - SINGAPORE: Palm oil may rise to 2,344 ringgit per tonne, as it has cleared a resistance at 2,286 ringgit per tonne.
The resistance is identified as the 86.4% retracement on the downtrend from 2,344 ringgit to 1,916 ringgit, serving as the last barrier towards 2,344 ringgit.
A break below 2,286 ringgit, now a support, may indicate a reversal of the uptrend and an immediate target will be established at 2,243 ringgit.
On the hourly chart, palm oil is riding on an upward wave 5, the final wave of a five-wave cycle from 1,916 ringgit. A rising trendline passing through the peaks of the wave 1 and the wave 3 suggests the wave 5 may end in a range of 2,310-2,344 ringgit, or at least, a very deep correction is due.
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** 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.
Read more at https://www.brecorder.com/2019/08/26/519748/palm-oil-may-peak-around-2344-ringgit/