22.10.2018 (The Edge Markets MY) - SINGAPORE (Oct 22): Palm oil may test a resistance at 2,238 ringgit per tonne, a break above which could lead to a gain to 2,262 ringgit.

The contract is expected to stabilise around a support at 2,219 ringgit, which is provided by the 50 percent projection level of an upward wave C from the Sept. 20 low of 2,137 ringgit.

The correction triggered by the resistance is classified as a pullback towards the neckline of a small inverted head-and-shoulders, which suggests a target around 2,300 ringgit. The pullback may end around 2,219 ringgit.

A break below 2,219 ringgit will violate the pattern, and a bearish target at 2,199 ringgit will be established accordingly. – Reuters