Palm oil targets RM2,346
SINGAPORE: Malaysian palm oil may break support at RM2,365 and fall further to RM2,346 per tonne, as indicated by a Fibonacci retracement analysis.
Support is provided by the 38.2 per cent Fibonacci retracement on the rise from the September 26 low of RM2,265 to the Thursday high of RM2,427. It temporarily stops a drop towards RM2,346, the 50 per cent retracement.
The deep fall from RM2,427 indicates a completion of the uptrend from RM2,265, which could be a part of a bigger downtrend that developed from RM2,484.
Resistance is at RM2,432, the 76.4 per cent Fibonacci retracement on the fall from RM2,484 to RM2,265, a rise to RM2,440 may confirm a valid break above this barrier.-- Reuters