SINGAPORE: Palm oil may break a resistance at 3,360 ringgit per tonne and rise into 3,427-3,477 ringgit range, as it failed twice to break a support at 3,243 ringgit.
The support worked well, in conjuncture with the bullish divergence on the hourly RSI.
A small double-bottom seems to be developing around 3,243 ringgit.
It will be confirmed when the contract breaks 3,360 ringgit.
A bullish target at 3,477 ringgit will be established once palm oil stands firm above 3,360 ringgit. A break below 3,243 ringgit could open the way towards 3,054-3,171 ringgit range.
Palm hits lowest in over 1-1/2 years as recession fears dent demand
On the daily chart, the contract found a support at 3,224 ringgit.
It is pulling back towards 3,489 ringgit, the July 14 low.
The big black candlestick on Sept. 28 may join hands with the following few to form a falling three method, to be followed by a resumption of the downtrend.
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