SINGAPORE: Palm oil may break a support at 4,369 ringgit per tonne, and fall to 4,273 ringgit.

The rise on Tuesday could be too sharp to sustain. It is subject to a correction. It is not very clear how the contract opens on Wednesday.

Most likely, it could open low and drop or open high and close low.

A break above 4,525 ringgit may not trigger an impressive gains, instead, the gains could be limited to a resistance at 4,556 ringgit.

On the daily chart, the contract reapproached a strong resistance zone of 4,486 ringgit to 4,576 ringgit, formed by the 2008 high and a 161.8% projection level.

The zone may trigger the second correction which is expected to be shallower than the one from the May 12 high of 4,525 ringgit.

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