SINGAPORE: Palm oil may break a resistance at 3,390 ringgit per tonne and rise into the 3,436-3,493 ringgit range. The current rise closely observes a set of retracement on the fall from 3,586 ringgit. It could be classified as a bounce against this fall.
However, a channel suggests a bigger upside, as the channel line points at a target around 3,650 ringgit.
Whether this aggressive target could be fulfilled will largely depend on the contract’s performance around 3,493 ringgit.
A break above this level will make the target available, while a failure may be followed by a resumption of the downtrend.
Palm oil claws back partial gains, weak exports limit
Support is at 3,344 ringgit, a break below could open the way towards 3,287 ringgit.
On the daily chart, the bullish divergence on MACD indicates a reversal of the downtrend from 3,980 ringgit.
Palm oil may climb into a range of 3,518 ringgit to 3,627 ringgit.