The Edge Markets (17/12/2018) - SINGAPORE (Dec 17): Palm oil faces a resistance at RM2,074 per tonne, a break above which could lead to a gain to RM2,103.

The resistance is provided by the 76.4% projection level of an upward wave c from RM1,979. This wave is capable of travelling to RM2,103. However, its five-wave structure indicates it may also ends around RM2,074.

A failure to break RM2,074 could cause a loss into a zone of RM1,997-2,026. Strategically, this target zone will be confirmed when palm oil breaks RM2,056, the nearest support.

On the daily chart, a temporary bottom has formed around a support at RM1,967, the 123.6% projection level of a downward wave (C) from RM2,896. The big white candlestick on Dec 14 suggests that palm oil may still have the momentum to rise into RM2,091-2,144.

(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.)

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