SINGAPORE: Palm oil may test a support at 3,736 ringgit per tonne, a break below which could open the way towards 3,690 ringgit. The bounce on Tuesday proved to be too weak to reverse the downtrend.
This bounce is expected to be followed by another round of deep fall. So much of the rise from 3,721 ringgit has been reversed that this low could be revisited either on Wednesday or Thursday.
Once the contract closes below this level, it may extend its loss towards 3,420-3,494 ringgit range. Resistance is at 3,810 ringgit, a break above which could lead to a gain into 3,856-3,885 ringgit range. On the daily chart, the contract has broken a rising trendline and a support of 3,859 ringgit. It may test the next support of 3,708 ringgit.
Palm unchanged after three days of losses
Bears failed thrice to drive the price below this support between Dec. 12, 2022 and Feb. 3, 2023. Equipped with a strong momentum, they may easily overcome this barrier and push the frontline to 3,521 ringgit.
Source: Brecorder
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