24/04/2017 (Times of India) - SINGAPORE, April 24 (Reuters) - Palm oil faces a resistance at 2,542 ringgit, a break above which could open the way towards the next resistance at 2,599 ringgit.

For a chart: http://tmsnrt.rs/2oCh53r

These resistances are identified respectively as the 23.6 percent and the 38.2 Fibonacci retracements of the downtrend from the March 22 high of 2,839 ringgit to the April 19 low of 2,450 ringgit.

After two days of successive gains, it is doubtful that palm oil could overcome this barrier and continue to rise towards 2,599 ringgit. Most likely, it will hover below 2,542 ringgit or retrace into the range of 2,477-2,507 ringgit first.

A break above 2,542 ringgit will not only open the way towards 2,599 ringgit, but also confirm the escape of the contract from a falling channel. A duplicated channel indicates a higher target at 2,645 ringgit.

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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

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. ** ($1 = 4.4430 ringgit) (Reporting by Wang Tao; Editing by Vyas Mohan)