SINGAPORE, Oct. 15 (Reuters) - Malaysian palm oil <KPOc3> is expected to retrace to 2,880 ringgit per tonne, as a bearish engulfing pattern is observed on its daily chart.
The engulfing pattern is one of the typical bearish reversals seen on a candlestick chart. As well, the rally from the Oct. 4 low at 2,653 ringgit could be too sharp not to be followed by a consolidation or retracement.
But the downside may not be limited to 2,880 ringgit, as a gap that formed between 2,808 ringgit and 2,886 ringgit could be partially filled as well.
Resistance is at 2,948 ringgit, a rise above which would open the way to 2,980.