SINGAPORE (July 17): Signals are mixed for palm oil, as it failed to break a resistance at RM1,984 per tonne.

The resistance is identified as the 50% projection level of a downward wave c from RM2,059. This barrier triggered a correction, which could be regarded as a pullback towards a falling trendline.

However, this correction could also indicate a reversal of the short uptrend from the July 10 low of RM1,916. Signals will become clearer when the contract leaves the range of RM1,966-1,984.Advertisement

A break below RM1,966 may cause a fall to RM1,944, while a break above RM1,984 could lead to a gain into a range of RM2,001-2,023.

(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 Markets