SINGAPORE: Palm oil may test a support at 3,844 ringgit per tonne, a break below which could cause a fall to 3,761 ringgit.

The contract failed to break a resistance at 3,926 ringgit, which triggered a pullback towards a falling trendline. It is not very clear how far this pullback could extend. The maximum depth could be around 3,761 ringgit.

A break above 3,926 ringgit could lead to a gain to 4,028 ringgit.

On the daily chart, the uptrend looks steady. Given that palm oil started a correction after failing to break the resistance at 3,926 ringgit on April 8, it may drop again.

The following drop could be much shallower, probably limited to a range of $3,761-3,864 ringgit.

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