SINGAPORE: Palm oil may test a resistance at 3,687 ringgit per tonne, with a good chance of breaking above this level and rising to 3,749 ringgit.

A correction from 4,192 ringgit has completed, as confirmed by its three waves structure and the relation between the wave C and the wave A.

The strong bounce from the March 31 low of 3,495 ringgit developed around a key support at 3,554 ringgit, the 61.8% retracement. This support seems to be holding firm.

Over the next few days, the contract is expected to rise towards the peak of the wave B at 4,011 ringgit, or at least to fill a gap forming between March 25 and March 26.

On the daily chart, a rising trendline remains steady, which also signals an intact uptrend. The white candlestick on March 31 represents a counterattack by bulls.

This bullish candlestick followed another one on March 29. Together, they are considered as a trend reversal signal.

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