SINGAPORE, Oct 4 (Reuters) - Malaysian palm oil is expected to retrace to between 2,600 ringgit and 2,588 ringgit per tonne, as it failed to break past a long-term trendline resistance at 2,733 ringgit.
An identical channel, duplicated from the upper channel is pointing to 2,600 ringgit - a support provided by the lower channel line. Palm oil opened with a big gap on Monday, confirming the development of the retracement.
The lower end of the range is the 61.8 percent Fibonacci retracement level on the rise from 2,486 ringgit to 2,754 ringgit.
A pullback towards the middle channel line is likely to be capped at 2,700 ringgit.