SINGAPORE (Feb 4): Palm oil is expected to test a resistance at 2,216 ringgit per tonne, a break above which will open the way toward the next resistance at 2,250 ringgit.
These two resistances are identified respectively as the 38.2 percent and the 50 percent Fibonacci retracements on the fall from the Jan. 15 high of 2,394 ringgit to the Jan. 30 low of 2,106 ringgit.
The drop from 2,394 ringgit has adopted a five-wave mode, indicating the downtrend may resume after the current rebound ends either around 2,216 ringgit or around 2,250 ringgit.
Most likely, the rebound could complete about 2,216 ringgit, which is also the peak of the fourth wave of the cycle, the wave 4.
** 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]]>