SINGAPORE: Malaysian palm oil may extend its gain to 2,407 ringgit per tonne, as it has broken above a resistance at 2,356 ringgit.
The resistance is provided by the 61.8 percent Fibonacci retracement on the fall to the July 26 low of 2,137 ringgit from 2,491 ringgit, an hourly chart high touched on June 20. The next resistance will be 2,407 ringgit, the 76.4 percent level.
Strategically, the target will be confirmed when palm oil rises to 2,370 ringgit, as the break above 2,356 ringgit will then become convincingly valid.
A drop below 2,348 ringgit, the 100 percent Fibonacci projection level of an upward wave c, will signal a false break above the 2,356 ringgit, and a bearish target at 2,314 ringgit will be established.
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.
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