SINGAPORE (March 19): Palm oil still targets 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 downtrend from 2,344 ringgit has reversed, as indicated by its five-wave structure and the strong recovery of the price from the March 15 low of 2,038 ringgit.
A break below 2,094 ringgit, now a support, could cause a loss into the range of 2,059-2,083 ringgit, formed by the 7 percent and the 14.6 percent retracements of the downtrend from 2,344 ringgit to 2,038 ringgit. On the daily chart, palm oil has cleared a resistance at 2,091 ringgit, the 107 percent projection level of the downtrend from 2,896 ringgit. Chances are it may gain further into the range of 2,144-2,246 ringgit. - Reuters