SINGAPORE: Palm oil may rise to 3,422 ringgit per tonne, as it has deeply pierced above a resistance at 3,322 ringgit.

The resistance is identified as the 23.6% retracement of the downtrend from 3,846 ringgit to 3,160 ringgit. The contract could be pulling back towards this barrier.

The pullback is expected to end around 3,322 ringgit. The gap forming between Feb. 2 and Feb. 3 has not been fully covered yet. That increases the chance of a further gain.

A break below 3,322 ringgit may cause a fall into 3,208-3,260 ringgit range. On the daily chart, the contract is trying to stabilize around a rising trendline.

The bounce triggered by the support at 3,148 ringgit may consist of three waves. The wave c could have just started. It may travel into the range of 3,431-3,606 ringgit.

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