SINGAPORE (March 18): Palm oil may gain more to 2,142 ringgit per tonne, as it has cleared a resistance at 2,094 ringgit.
The resistance is identified as the 61.8 percent retracement of the uptrend from 1,940 ringgit to 2,344 ringgit. The next resistance will be at 2,142 ringgit, a break above which could lead to a further gain to 2,190 ringgit.
The strong recovery of the price from the March 15 low of 2,038 ringgit, along with the five-wave structure of the downtrend from 2,344 ringgit, suggests a reversal of the downtrend.
Another retracement analysis on the fall from 2,344 ringgit to 2,038 ringgit reveals that the contract has cleared a resistance at 2,110 ringgit, the 23.6 percent level. It is heading towards 2,155 ringgit. On the daily chart, palm oil has found a support at 2,034 ringgit, the 114.6 percent projection level of the downtrend from 2,896 ringit. It has risen above a resistance at 2,091 ringgit as well. Chances are it may gain further into the range of 2,144-2,246 ringgit. - Reuters