SINGAPORE (March 16): Palm oil may rise to 2,876 ringgit per tonne, as it has pierced above a resistance at 2,815 ringgit.

The resistance was provided by the 200 percent Fibonacci projection level of a downward wave (3), the third wave of a five-wave cycle from the Jan. 18 high of 3,175 ringgit.

Even though this wave has completed, its various projection levels seem to be controlling the current move.

The next resistance will be at 2,876 ringgit. The strength of the bounce from the March 14 low of 2,697 ringgit strongly indicates a completion of the cycle and a reversal of the downtrend.

Strategically, the target at 2,876 ringgit will be confirmed when palm oil rises to 2,820 ringgit. A drop below 2,794 ringgit could be extended to 2,754 ringgit. - Reuters