TECHNICALS — Palm oil may retest resistance at 4,766 ringgit

For more technical analyses, click TECH/C SINGAPORE, Oct 14 (Reuters) — Palm oil may retest a resistance at 4,766 ringgit per metric ton, a break above which could lead to a gain into the 4,799-4,820 ringgit range. The resistance caused a deep correction, which has been almost reversed. The reversal signals a continuation of the uptrend from 4,491 ringgit. The pattern around 4,491 ringgit looks like a double-bottom, suggesting both a target around 4,766 ringgit and a reversal of the downtrend from 5,050 ringgit. Immediate support is at 4,696 ringgit, a break below which may trigger a fall into the 4,622-4,656 ringgit range. On the daily chart, a retracement analysis on the downtrend from 5,050 ringgit reveals a break above the 38.2% level of 4,705 ringgit. The break opened the way toward the 4,771-4,836 ringgit range. Until the market climbs above 4,836 ringgit, it would be hard to determine the nature of the current rise, which may turn out to be either a bounce or a continuation of the uptrend from 3,893 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 pl