Palm oil may retest 5,048 ringgit, pullback over

SINGAPORE: Palm oil may retest a resistance at 5,048 ringgit per tonne, a break above could lead to a gain to 5,187 ringgit.

The shallow fall triggered by the resistance at 5,048 ringgit is regarded as a pullback towards a triangle, which was confirmed as a bullish continuation pattern, suggesting a target of 5,187 ringgit.

A break below 4,909 ringgit could be followed by a drop to 4,822 ringgit. Such a drop would make the triangle invalid.

On the daily chart, the contract looks neutral in a range of 4,878 ringgit to 5,024 ringgit.

A break above 5,024 ringgit could signal the continuation of the uptrend towards 5,350 ringgit, while a break below 4,878 ringgit could cause a fall to 4,698 ringgit.

The bias could be towards the upside, as both a flag and a rising trendline suggest a bullish target of 5,350 ringgit.

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