SINGAPORE: Palm oil is expected to bounce more to 4,132 ringgit per tonne, as it has pierced above a resistance at 4,010 ringgit.

The next resistance will be at 4,132 ringgit, which is indicated by a falling channel as a target. The current bounce may be as strong as the one from the May 17 low of 4,203 ringgit.

Support is at 3,950 ringgit, a break below which could be followed by a shallow drop to 3,888 ringgit.

On the daily chart, the uptrend remains intact within a rising channel.

The trend may have resumed. It is observed that the resumption has been quite often accompanied by a high-low bottom.

This pattern may repeat. The current predication is the contract may bounce to 4,131 ringgit first and then retreat towards the lower channel line again.

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