18.10.2018 (The Edge Markets MY) - SINGAPORE (Oct 18): Signals are a bit mixed for palm oil as it faces a resistance at RM2,262 per tonne.

The resistance is provided by the 76.4% projection level of an upward wave (c) from the Sept 20 low of RM2,137. A break above this barrier could lead to a gain to RM2,300.

Palm oil will eventually overcome this barrier and rise to RM2,300, as suggested by a small inverted head-and-shoulders. The question is whether the contract could succeed in its current attempt.

The contract is yet to totally or partially fill a gap formed between Oct 15 and Oct 16. It is also due for a pullback towards the neckline of the inverted head-and-shoulders. A break below RM2,238 could cause a loss to RM2,219.