The Edge Markets (25/09/2018) - SINGAPORE (Sept 25): Palm oil may test a resistance at 2,176 ringgit per tonne, a break above which could lead to a gain to the next resistance at 2,200 ringgit.

These resistances are identified respectively as the 23.6 percent and the 38.2 percent retracements on the downtrend from 2,303 ringgit to 2,137 ringgit.

A small double-bottom seems to have formed around 2,137 ringgit, it suggests a target around 2,190 ringgit. Once palm oil rises to 2,190 ringgit, it is likely to gain further to 2,200 ringgit.

On the daily chart, palm oil managed to stabilize around a support at 2,144 ringgit, the 100 percent projection level of a downward wave (C) from 2,896 ringgit. However, there is no clear indication of the completion of this wave.

A bounce has started, which is expected to be weaker than the previous one from the July 25 low of 2,140 ringgit. This time, the bounce may end below 2,246 ringgit. - Reuters

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