SINGAPORE (Feb 5): Palm oil is expected to end its current rebound around a resistance at 2,248 ringgit per tonne, as indicated by its wave pattern and a Fibonacci ratio analysis.
The resistance is at the 100 percent Fibonacci projection level of an upward wave c. It is strengthened by another one at 2,250 ringgit, the 50 percent Fibonacci retracement on the fall from the Jan. 15 high of 2,394 ringgit to the Jan. 30 low of 2,106 ringgit.
Support is at 2,191 ringgit, the 38.2 percent projection level, a break below which will signal the completion of the rebound, and a bearish target at 2,156 ringgit will be established.
** 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. **
Source : The Edge Markets]]>