Palm oil to test resistance at 2,326 ringgit

11 Feb, 2015

SINGAPORE: Palm oil is expected to test a resistance at 2,326 ringgit per tonne, as it has found a support at 2,284 ringgit.

The resistance and the support are identified respectively as the 76.4 percent and the 61.8 percent Fibonacci retracements on the fall from the Jan. 15 high of 2,394 ringgit to the Jan. 30 low of 2,106 ringgit.

Wave pattern suggests the trend from 2,106 ringgit has not completed, as the fifth wave labelled 5 is yet to unfold.

A break above 2,326 ringgit could open the way towards 2,355 ringgit, the 86.4 percent retracement, while a break below 2,284 ringgit will be extended to 2,250 ringgit, the 50 percent level.

Copyright Reuters, 2015

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