The range has been formed by the 50 percent and the 76.4 percent Fibonacci retracements on the fall from 2,223 ringgit to the Oct. 16 low of 2,104 ringgit. A drop below 2,164 ringgit will be extended to 2,132 ringgit, the 23.6 percent retracement.
However, the bias seems to be towards the upside, which means palm oil may rise above 2,195 ringgit and then gain further to 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.