Palm oil may fall to 3,322 ringgit

SINGAPORE: Palm oil may fall to 3,322 ringgit per tonne, as it has cleared a support at 3,422 ringgit.

The support is identified as the 38.2% retracement of the downtrend from 3,846 ringgit to 3,160 ringgit.

The next support will be at 3,322 ringgit, a break below which could cause a fall to 3,260 ringgit.

A break above 3,422 ringgit could lead to a gain into 3,503-3,584 ringgit range. On the daily chart, the contract seems to have failed breaking a resistance at 3,431 ringgit, the 38.2% retracement on the uptrend from 2,691 ringgit to 3,888 ringgit.

The failure may have triggered a drop towards 3,290 ringgit.

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