Palm oil signals mixed

SINGAPORE: Signals are mixed for palm oil , as it is consolidating around a resistance at 4,010 ringgit per tonne.

Even though the contract managed to close above this barrier on May 28, its sideways move thereafter makes a further gain towards 4,132 ringgit doubtful.

This target will only be confirmed when the contract breaks 4,061 ringgit.

A drop below 3,988 ringgit could indicate a continuation of the downtrend towards 3,888 ringgit, as the trend has been mostly developing within a falling channel.

On the daily chart, the uptrend remains intact within a rising channel.

However, a spinning top forming on May 28 around 4,026 ringgit suggests a possible shallow fall towards 3,938 ringgit.

This fall will contribute to the formation of a solid bottom around the lower channel line. The pattern would play a key role in ensuring the following strong rally.

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