15.03.2018 (The Edge Markets MY) - SINGAPORE (March 15): Palm oil may bounce further to 2,459 ringgit per tonne, as suggested by a retracement analysis.

The analysis is on the downtrend from 2,568 ringgit to 2,350 ringgit. It reveals that palm oil has broken a resistance at 2,433 ringgit, the 38.2 percent level. It is heading towards the next resistance at 2,459 ringgit.

The successive gains over the past two days have confirmed a false break below a trendline on the daily chart.

 This false break makes much more sense while a bullish divergence appears on the daily chart. These two signals suggest that either a downtrend from 2,896 ringgit has reversed or a very strong bounce has started. The wave structure from 2,896 ringgit also indicates a reversal of the trend.

A break below 2,433 ringgit (first chart) may cause a loss to 2,401 ringgit. – Reuters