The Edge Markets (30/10/2017) - SINGAPORE (Oct 30): The palm oil January contract looks neutral in a narrow range of RM2,812-2,832 per tonne, and an escape could suggest a direction.

The range is formed by the 76.4% and the 86.4% Fibonacci retracements of the downtrend from the Sept 14 high of RM2,860 to the Oct 3 low of RM2,656.

A former target of RM2,860 has been temporarily aborted and will only be resumed when palm oil breaks above RM2,832.

A break below RM2,812 may cause a loss to RM2,782. The bias seems to be towards the downside, as another Fibonacci projection analysis on the daily chart reveals a resistance at RM2,826, which may trigger a correction.

(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.)