SINGAPORE: Palm oil may gain more into a range of 5,855-5,966 ringgit per tonne, as suggested by a projection analysis. Market is still under a consolidation phase.

After two consecutive days of drop from March 31 to April 1, bears simply failed to keep the momentum. Bulls are taking a revenge.

It is not very clear how far the current bounce could go.

A short channel indicates a target of 6,104 ringgit, which looks a bit too far away.

A realistic target will be either 5,855 ringgit or 5,966 ringgit. Support is at 5,606 ringgit, a break below which may cause a fall into 5,384-5,512 ringgit range.

Palm oil may test support at 5,606 ringgit

On the daily chart, the contract narrowly missed a key support at 5,400 ringgit.

The drop from 7,268 ringgit is supposed to complete around this level.

The white candlestick on Monday does not look big enough to suggest a trend reversal.

However, it is the very early signal that the downtrend is ending.