SINGAPORE: Palm oil may break a resistance at 3,300 ringgit per tonne and rise to a range of 3,348-3,381 ringgit, as the fall from the Jan. 6 high of 3,888 ringgit has completed.

The completion was indicated by the five-wave structure of the fall, and the bounce from around a support 3,173 ringgit.

This bounce is expected to extend towards the peak of a wave 4 around 3,348 ringgit.

The upside, however, may not be limited to the target zone.

A retracement analysis on the fall from 3,388 ringgit to 3,160 ringgit suggests a higher target range of 3,438-3,524 ringgit.

Support is at 3,261 ringgit, a break below which may cause a fall to 3,221 ringgit. On the daily chart, the contract stabilized around a support at 3,148 ringgit, the 61.8% retracement on the uptrend from 2,691 ringgit to 3,888 ringgit.

The hammer on Jan. 20 and the following two white candlesticks form a convincing bullish reversal signal.

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