SINGAPORE (Feb 27): Palm oil may retrace to a support at 2,766 ringgit per tonne, as it failed to break a resistance at 2,821 ringgit. 

The support and the resistance are identified respectively as the 7% and the 23.6% Fibonacci retracements of the downtrend from the Feb 15 high of 3,075 ringgit to the Feb 23 low of 2,743 ringgit.

Wave pattern suggests that the current bounce from 2,743 ringgit has been driven by a wave 4, the fourth wave of a five-wave cycle from the Feb 10 high of 3,135 ringgit. This wave may roughly match the preceding wave 2 in size, which is from the Feb 14 low of 3,011 ringgit.

A break above 2,821 ringgit could lead to a further gain to 2,870 ringgit, which is indicated by a duplicated channel. - by Wang Tao, Reuters

(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.)