Friday, 13 March 2015 09:44
SINGAPORE: Palm oil is expected to test a support at 2,218 ringgit per tonne, a break below which will lead to a further loss to 2,175 ringgit.
The support is provided by the 61.8 percent Fibonacci retracement on the rise from the Jan. 30 low of 2,106 ringgit to the March 4 high of 2,400 ringgit, blocking the way towards the 76.4 percent level at 2,175 ringgit.
Strategically, a break below the support could be confirmed when palm oil slides to 2,213 ringgit.
Resistance is at 2,253 ringgit, the 50 percent level, a break above which could signal an extension of the rebound from the March 10 low of 2,221 ringgit, towards 2,288 ringgit – the 38.2 percent level.
Copyright Reuters, 2015
