25/10/2017 (Times of India) - SINGAPORE, Oct 25 (Reuters) - The palm oil January contract may retrace to a support at 2,758 ringgit per tonne, as it failed to break a resistance at 2,812 ringgit

For a chart: http://tmsnrt.rs/2y2ZN98

The resistance is identified as the 76.4 Fibonacci retracement on the downtrend from the Sept. 14 high of 2,860 ringgit to the Oct. 3 low of 2,656 ringgit, working as the last barrier towards 2,860 ringgit.

The barrier triggered a correction which seems to be extending towards 2,758 ringgit. Most likely, the correction will end around this level, as an inverted head-and-shoulders suggests a target above 2,812 ringgit, which is yet to be fulfilled.

A break below 2,758 ringgit could cause a further loss to 2,734 ringgit, while a break above 2,812 ringgit could open the way towards 2,860 ringgit.

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 ** 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. **

($1 = 4.4430 ringgit) (Reporting by Wang Tao; Editing by Sherry Jacob-Phillips)