SINGAPORE (July 27): Palm oil may test a resistance at 2,218 ringgit per tonne, a break above which could lead to a gain to the next resistance at 2,249 ringgit.
These resistances are identified respectively as the 50 percent and the 38.2 percent projection levels on a downward wave C from 2,348 ringgit.
Despite the extended bounce from the July 13 low of 2,144 ringgit, it is too early to conclude that the wave C has completed.
A break above 2,218 ringgit will not only open the way towards 2,249 ringgit, but also confirm a double-bottom developing around 2,144 ringgit. This pattern suggests a target around 2,287 ringgit.
Shall the market open on Friday below the support at 2,187 ringgit, a bearish target at 2,149 ringgit will be established accordingly. - Reuters