SINGAPORE: Palm oil may test a resistance at 3,381 ringgit, with a good chance of breaking above this level and rising into a range of 3,426 ringgit to 3,474 ringgit per tonne.

The contract managed to stabilize around a support at 3,300 ringgit, the 161.8% projection level of an uptrend from 2,764 ringgit.

The stabilization signals a completion of the successive falls over the past few days, or the first part of these falls. The contract is expected to bounce sharply or slowly.

A break below 3,300 ringgit could cause a drop to 3,221 ringgit.

On the daily chart, a spinning top formed around a support at 3,274 ringgit. It confirms a completion of the fall from the Jan. 6 high of 3,888 ringgit.

Over the next few days, the drop is expected to be partially reversed.

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