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.
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