SINGAPORE: Palm oil may test a support at 3,888 ringgit per tonne, a break below could open the way towards 3,796 ringgit. The current bounce is expected to be much weaker than the first one from the Dec. 12, 2022 low of 3,721 ringgit.
Whether the bounce was over around 3,980 ringgit is subject to further observation.
The failure of the contract to break 3,980 ringgit at least triggered a correction which could extend to any point above 3,721 ringgit.
A break above 3,980 ringgit may be followed by a rise to 4,093 ringgit. On the daily chart, a spinning top formed on Monday, which signals a dissipation of the bullish momentum around a resistance at 3,980 ringgit.
Palm oil extends gains on bargain buying, ends higher
The contract is expected to hover below this barrier for one or two days or retrace towards 3,859-3,888 ringgit range. Only a break above 4,009 ringgit could confirm an extension of the bounce towards 4,093 ringgit.
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