Palm oil may retest support at 4,736 ringgit

SINGAPORE, Oct 22 (Reuters) - Palm oil may retest a support at 4,736 ringgit per metric ton, as a correction from 4,852 ringgit looks incomplete.

The correction is expected to extend to 4,706 ringgit, the 50% projection level of an uptrend from 4,578 ringgit. This rising trendline points to this target.

Resistance is at 4,799 ringgit, a break above which could lead to a gain into the 4,834 to 4,871 ringgit range. On the daily chart, the market faces a key resistance at 4,836 ringgit, the 61.8% retracement on the downtrend from 5,050 ringgit.

A dark cloud cover formed between Tuesday and Wednesday, signalling a reversal of the uptrend from 4,491 ringgit. Given that the market has pierced below the support at 4,771 ringgit, it is likely to extend its losses to the next support at 4,705 ringgit.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on Workspace - a platform provided by the London Stock Exchange.

** No information in this analysis should be considered business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.