25/01/2018 (The Edge Markets MY) - SINGAPORE (Jan 25): The palm oil third-month contract may gain more to 2,555 ringgit, as it has pierced above a resistance at 2,519 ringgit per tonne.

The resistance is identified as the 138.2 percent projection level of a downward wave (c). The next resistance will be at 2,555 ringgit, a break above which could lead to a further gain to 2,577 ringgit.

A falling trendline from the Jan. 9 high of 2,641 ringgit was broken. The break signals a reversal of the downtrend from this high.

A drop from the current level will be regarded as a pullback towards the trendline. Most likely, the pullback will end in the zone of 2,462-2,491 ringgit. – Reuters