9 May 2019 (The Edge Markets MY) SINGAPORE: Palm oil may retest a resistance at RM2,050 per tonne, a break above which could lead to a gain into the range of RM2,075-RM2,099.

The resistance is identified as the 38.2% retracement of the fall from RM2,179 to RM1,970. Palm oil failed to overcome this barrier in its first attempt, it may succeed in its second attempt.

A break below RM2,019, however, could complicate the picture, as this break will signal either the bounce from RM1,970 is over, or the first round of the bounce completes. A bearish target at RM1,985 will be established accordingly.

On the daily chart, palm oil managed to hover above a resistance at RM2,034, the 114.6% projection level of a downtrend from RM2,896. It still has a chance of testing the next resistance at RM2,091.