Palm oil biased to approach 2,373 ringgit

SINGAPORE: Palm oil is biased to approach a resistance at 2,373 ringgit per tonne, as indicated by a wedge.

The lower trendline of the pattern provides a support around 2,280 ringgit, which has caused a bounce towards the upper trendline around 2,373 ringgit, the 14.6 percent Fibonacci retracement on the uptrend from the Aug. 25 low of 1,863 ringgit to the Sept. 29 high 2,460 ringgit.

The contract is presumably riding on a downward wave c. A Fibonacci projection analysis on the target of this wave reveals a key support at 2,264 ringgit, the 50 percent level, only a break below which could confirm the extension of this wave towards 2,232 ringgit, the 38.2 percent retracemen