SINGAPORE: Palm oil may rise into a range of 3,503-3,584 ringgit per tonne, as it has broken a resistance at 3,422 ringgit.

The resistance is identified as the 38.2% retracement of the downtrend from 3,846 ringgit to 3,160 ringgit. The next resistance will be at 3,503 ringgit, a break above which could lead to a gain to 3,584 ringgit.

A drop below 3,400 ringgit may signal the break above 3,422 ringgit was false. The contract may then drop towards 3,322 ringgit.

On the daily chart, palm oil not only stabilized around a key support at 3,148 ringgit, but also managed to hover above a rising trendline. The uptrend is thus considered intact.

Following its failure to break 3,431 ringgit, the contract may overcome this barrier and rise towards 3,606 ringgit.

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