Palm oil may retrace into 2,214-2,228 ringgit range before rising

SINGAPORE: Palm oil may retrace into a range of 2,214-2,228 ringgit per tonne, before retesting a strong resistance at 2,251 ringgit.

The resistance is provided by the 100 percent projection level of an upward wave (c) from the Oct. 11 low of 2,153 ringgit.

This barrier could have triggered a pullback towards a falling trendline and the neckline of a small inverted head-and-shoulders. In addition, the big gap formed between Oct. 15 and Oct. 16 may be totally or partially filled.

A break above 2,251 ringgit could lead to a gain to 2,274 ringgit.