Palm oil may rise into 4,130-4,231 ringgit range

SINGAPORE: Palm oil may rise into a range of 4,130-4,231 ringgit per tonne, as an uptrend from 3,642 ringgit could have resumed.

The resumption is confirmed by the strong surge on Tuesday, which has almost reversed the drop from 4,084 ringgit. The trend is riding on a wave c which may travel to 4,231 ringgit, as pointed by a rising trendline.

Support is at 4,043 ringgit, a break below which could cause a fall into 3,945-3,998 ringgit range. On the daily chart, the contract is poised to retest a resistance at 4,131 ringgit, after its failure to break this level on March 15.

This time, it may succeed, as indicated by the big white candlestick forming on Tuesday. Given that the fall from 4,192 ringgit has almost been reversed, there is little doubt that the uptrend from the May 2020 low of 1,939 ringgit has continued.

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