SINGAPORE: Palm oil may retest a support at 3,465 ringgit, a break below which could cause a fall into 3,300-3,405 ringgit range.

A correction from the Jan. 6 high of 3,888 ringgit looks incomplete. It may consist of three waves. The wave C from 3,720 ringgit is unfolding towards 3,148 ringgit, the 61.8% retracement of the uptrend from 2,691 ringgit to 3,888 ringgit.

Resistance is at 3,600 ringgit, a break above which could lead to a gain to 3,646 ringgit. Only a further gain could indicate an extension of the uptrend from 3,210 ringgit towards 3,888 ringgit.

On the daily chart, the contract closed below a resistance at 3,581 ringgit. It is still likely to drop to 3,411 ringgit.

A rise above the Monday high of 3,618 ringgit could be extended into 3,698-3,856 ringgit range.

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