SINGAPORE (June 12): Signals are mixed for palm oil, as it is stuck in a narrow range of RM1,997-2,019 per tonne.
The range is formed by the 76.4% and the 61.8% retracements of the uptrend from RM1,960 to RM2,115. A break below RM1,997 could open the way towards the May 13 low of RM1,960, while a break above RM2,019 could lead to a gain to RM2,038.
The bias seems to be towards the upside, as a wave c from RM2,075 may have completed, even though it narrowly missed its ultimate target at RM1,986, the 100% projection level.
The support at RM1,997 coincides with the May 24 low. Such a coincidence increases the chance of a bounce towards RM2,038.
(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.)