04.10.2018 (The Edge Markets) - SINGAPORE (Oct 4): Palm oil may retrace to 2,176 ringgit per tonne, as it failed to break a resistance at 2,200 ringgit.

The resistance is provided by the 38.2 percent retracement on the downtrend from 2,303 ringgit to 2,137 ringgit. Working together with the resistance is another one at 2,199 ringgit, the Sept. 26 high.

The contract made a false break above 2,200 ringgit. It seems bulls are not ready to overcome this barrier yet. To make a valid break, palm oil needs to stand firm above this level.

A break will confirm a small high-low bottom forming around 2,237 ringgit, and a bullish target at 2,240 ringgit will be established. – Reuters