Palm oil may test resistance at 3,931 ringgit

SINGAPORE: Palm oil may test a resistance at 3,931 ringgit per tonne, a break above which could lead to a gain into a range of 4,009-4,105 ringgit.

The contract has broken a falling trendline. The break opened the way towards 4,260 ringgit.

A realistic target will be either 3,931 ringgit or 4,009 ringgit.

Generally, a break above a falling trendline will be followed by a pullback towards the line.

The expected pullback may occur in the range of 4,009-4,105 ringgit.

On the daily chart, the contract faces a resistance at 3,915 ringgit, which is strengthened by a similar one established by a rising trendline.

The current rise is classified as a pullback towards a rising trendline.

A break above 3,915 ringgit, however, would make this classification doubtful.

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