22 Jan 2019 (The Edge Markets MY) - SINGAPORE - Palm oil may retrace to a support at RM2,198 per tonne, as it faces a resistance at RM2,227. The support and the resistance are identified as the 176.4% and the 200% projection levels on an uptrend from RM1,979.

A wedge has been confirmed as a bullish continuation pattern, suggesting a target around RM2,274. However, a pullback towards the upper trendline of the pattern is yet to occur. Most likely, this pullback will be triggered by the resistance at RM2,227.

A break above RM2,227 would lead to a gain into the range of RM2,245-2,274. On the daily chart, palm oil escaped from a falling channel. A duplicated channel indicates an aggressive target at RM2,431. Strategically, the target will only be available when palm oil breaks RM2,246.