SINGAPORE: Palm oil is expected to test resistance at 2,150 ringgit per tonne, a break above which will lead to a further gain to 2,178 ringgit.
Resistance is provided by the 23.6 percent Fibonacci retracement on the rise from the Sept. 2 low of 1,914 ringgit to the Oct. 1 high of 2,223 ringgit, blocking the way towards the 14.6 percent retracement at 2,178 ringgit, the 14.6 percent level.
The correction from 2,223 ringgit could have completed, as palm oil failed to break support at 2,105 ringgit, the 38.2 percent level. The preceding uptrend from 1,914 ringgit could have resumed, driven by a wave (c) which may travel above 2,223 ringgit.
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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