Palm oil to retest resistance at 4,010 ringgit

SINGAPORE: Palm oil is expected to retest a resistance at 4,010 ringgit per tonne, a break above which could lead to a gain to 4,132 ringgit.

The contract is consolidating around a rising trendline. The consolidation seems to be shaped into a small double-bottom. It suggests a target around 4,132 ringgit.

It will be confirmed when the contract breaks 4,010 ringgit.

Key support is at 3,888 ringgit, a break below which could cause a fall to 3,738 ringgit. On the daily chart, the uptrend remains intact within a rising channel.

The contract is trying stabilize around the lower channel line.

The stabilization signals both a completion of the fall from the May 12 high of 4,525 ringgit and a possible resumption of the uptrend.

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