Palm oil faces resistance at 3,179 ringgit/T

SINGAPORE: Malaysian palm oil faces a resistance of 3,179 ringgit per tonne, which needs to be broken above before the next target at 3,206 ringgit becomes available.

The resistance is the 61.8 percent Fibonacci projection level of an upward wave "c", and a failure to break it will lead to a resumption of a short-term downtrend that started at the Jan. 3 high of 3,244 ringgit.

A rise to 3,186 ringgit will be termed a valid break above the resistance, while a drop below 3,151 ringgit will significantly increase the chance of a further loss to 3,103 ringgit, a low touched on Jan. 16.

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.

Copyright Reuters, 2012