SINGAPORE (Nov 13): Palm oil is expected to test a support at 2,225 ringgit per tonne, a break below which will lead to a further loss to 2,196 ringgit.
The support is at the 50 percent Fibonacci retracement on the rise from the Oct. 16 low of 2,104 ringgit to the Nov. 3 high 2,345 ringgit. Palm oil's failure to break a resistance at 2,288 ringgit, the 23.6 percent level, indicates an extension of the correction from 2,345 ringgit, towards 2,196 ringgit, the 61.8 percent level.
Resistance is at 2,253 ringgit, the 38.2 percent level, a break above which could trigger a further gain towards 2,288 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. **