The Edge Markets (08/10/2018) - SINGAPORE (Oct 8): Palm oil may fall to RM2,200 per tonne, following its failure to break a resistance at RM2,240.

The resistance is identified as the 61.8% retracement on the downtrend from RM2,303 to RM2,137. A temporary top seems to be forming around the resistance and the contract is due for a correction.

Making a correction more likely is the undisrupted rally from the Oct 2 low of RM2,147. The rally could be too sharp to sustain.

A break below RM2,200 could cause a loss to RM2,176 while a break above RM2,240 could lead to a gain to RM2.264.

(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.)

Read more at http://www.theedgemarkets.com/article/palm-oil-may-fall-rm2200