SINGAPORE: Palm oil failed to break a resistance at 3,810 ringgit per tonne. It may hover below this level or retreat into a zone of 3,687-3,749 ringgit.

This resistance may trigger the second pullback towards a falling trendline. Working together with this resistance is another one at 3,798 ringgit, the 38.2% retracement on the uptrend from 3,160 ringgit to 4,192 ringgit.

Together, these barriers may stop the rise and force the contract to fall.

A break above 3,810 ringgit could lead to a gain to 3,887 ringgit.

On the daily chart, an uptrend remains intact. However, the resumption of the uptrend quite often started with a high-low bottom after a deep correction.

Such pattern appeared in October 2020 and January. It may repeat while market is recovering from the March 31 low of 3,495 ringgit.

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