Palm oil may retrace toward 4,382 ringgit

SINGAPORE, Nov 13 (Reuters) - Palm oil may retrace toward 4,382 ringgit per metric ton, following its failure to break a resistance at 4,471 ringgit.

A retracement analysis on the downtrend from 4,582 ringgit to 4,091 ringgit reveals this strong resistance at the 50% retracement.

The market's failure overcome this barrier suggests a completion of the wave c from 4,238 ringgit, or the whole bounce from 4,091 ringgit.

A break above 4,455 ringgit may lad to a gain toward 4,519 ringgit. On the daily chart, a bullish target of 4,572 ringgit has been temporarily aborted due to the bearish readings on the hourly chart.

The spinning top on Thursday also reflects the market's hesitation over whether to extend its gains. A correction looks more likely.

** 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. ​