SINGAPORE – Palm oil is expected to test a resistance at 2,218 ringgit per tonne, a break above which will lead to a further gain to 2,253 ringgit.
The resistance is at the 61.8 % Fibonacci retracement on the rise from the Jan. 30 low of 2,106 ringgit to the March 4 high of 2,400 ringgit. This barrier has triggered a consolidation which has been shaped into a triangle.
The pattern has been confirmed as bullish, since its upper trendline has been broken. It points a target at 2,253 ringgit, the 50 % level.
Support is at 2,180 ringgit, a break below which could cause a further loss to 2,146 ringgit, the 86.4 % level. – Reuters