SINGAPORE (Nov 17): Palm oil is expected to test a resistance at 2,225 ringgit per tonne, a break above which will lead to a further gain to 2,253 ringgit.
A drop from the Nov. 12 high of 2,286 ringgit could have completed around a support at 2,196 ringgit, the 61.8 percent Fibonacci retracement on the rise from the Oct. 16 low of 2,104 ringgit to the Nov. 3 high 2,345 ringgit.
Wave pattern suggests that the drop be a part of a downward wave b that developed from 2,345 ringgit. This wave will be totally reversed by an upward wave c.
A break below 2,196 ringgit will open the way towards the 76.4 percent level at 2,161 ringgit.
** 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. **