MARKET DEVELOPMENT
Palm Oil May Retest Resistance At 2,495 Ringgit
Palm Oil May Retest Resistance At 2,495 Ringgit
22/01/2016 (Reuters) - Palm oil may retest a resistance at 2,495 ringgit per tonne, as suggested by its wave pattern and a Fibonacci projection analysis.
The contract is riding on a wave C, the third wave of a three-wave cycle from the Oct. 9 low of 2,216 ringgit. This wave could be further broken down into five smaller waves. The current wave 5 failed to overcome the barrier at 2,495 ringgit, the 138.2 percent Fibonacci projection level of the wave C.
However, the wave 5 also consists of three smaller waves, with the third wave labelled c expected to climb above 2,495 ringgit, to eventually rise into the range of 2,535-2,560 ringgit, formed by the 161.8 percent and the 176.4 percent levels.
Support is at 2,430 ringgit, the 100 percent level, a break below which could cause a loss to 2,395 ringgit, the support provided by the lower trendline of a rising wedge.
The contract is riding on a wave C, the third wave of a three-wave cycle from the Oct. 9 low of 2,216 ringgit. This wave could be further broken down into five smaller waves. The current wave 5 failed to overcome the barrier at 2,495 ringgit, the 138.2 percent Fibonacci projection level of the wave C.
However, the wave 5 also consists of three smaller waves, with the third wave labelled c expected to climb above 2,495 ringgit, to eventually rise into the range of 2,535-2,560 ringgit, formed by the 161.8 percent and the 176.4 percent levels.
Support is at 2,430 ringgit, the 100 percent level, a break below which could cause a loss to 2,395 ringgit, the support provided by the lower trendline of a rising wedge.