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Palm oil may test a resistance at 2,191 ringgit per tonne, a break above which could lead to a gain to 2,227 ringgit.
These resistances identified as the 50 percent and the 61.8 percent retracement of the downtrend from 2,344 ringgit to 2,038 ringgit. A correction triggered by the resistance at 2,227 ringgit could have completed around a support at 2,155 ringgit.
The correction is regarded as a pullback towards the neckline of an inverted head-and-shoulders, which suggests a target around 2,344 ringgit. A break below 2,155 ringgit will not only make the pattern invalid but also cause a loss to 2,110 ringgit.
On the daily chart, the fall on Wednesday is classified as an accumulation of bullish momentum to test a trendline resistance at 2,246 ringgit. A break below 2,144 ringgit, however, could signal that bulls give up testing the trendline.
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