The Edge Markets (26/10/2017) - SINGAPORE (Oct 26): The palm oil January contract may break a resistance at RM2,812 per tonne, and gain more to the Sept 14 high of RM2,860.

The resistance is identified as the 76.4 Fibonacci retracement on the downtrend from RM2,860 to the Oct 3 low of RM2,656, working as the last barrier towards RM2,860.

The correction triggered by this resistance has been totally reversed. The reversal signals a resumption of the uptrend.

A break below RM2,782 could cause a loss limited to RM2,758.

(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.)