Palm oil may test resistance at 3,426 ringgit

SINGAPORE: Palm oil may test a resistance at 3,426 ringgit per tonne, a break above which could lead to a gain to 3,474 ringgit.

The contract has pierced above a resistance at 3,381 ringgit, the 186.4% projection level of an uptrend from 2,746 ringgit. The next resistance will be at 3,426 ringgit.

A retracement analysis on the fall from 3,888 ringgit to 3,160 ringgit reveals a target of 3,438 ringgit, the 38.2% level, which is near 3,426 ringgit.

Support is at 3,348 ringgit, a break below which could cause a fall to 3,300 ringgit. On the daily chart, the contract is poised to test a resistance at 3,431 ringgit, the 38.2% retracement on the uptrend from 2,691 ringgit to 3,888 ringgit.

A break could lead to a gain to 3,606 ringgit.

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