Palm oil is riding on an upward wave C that developed from the Oct. 16 low of 2,104 ringgit. This wave has been disrupted by a resistance at 2,295 ringgit, the 61.8 percent Fibonacci projection level.
This wave, however, is so fierce that it may travel to 2,413 ringgit, its 100 percent projection level. The correction triggered by the resistance at 2,295 ringgit seems to be minor.
Strategically, a rise to the Oct. 30 high of 2,302 ringgit could confirm both a break above 2,295 ringgit and the target at 2,340 ringgit.
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.