SINGAPORE: Palm oil may bounce towards a resistance at 4,089 ringgit per tonne, following its stabilization around a support of 3,994 ringgit. The support is identified as the 61.8% retracement of the uptrend from 3,728 ringgit to 4,425 ringgit, standing as a key barrier towards 3,728 ringgit.

Even though a wave c from 4,247 ringgit is yet to fulfil its target of 3,931 ringgit, a bounce as decent as the one from the March 8 low of 4,109 ringgit could be unfolding.

A short falling channel suggests an extension of the bounce towards 4,089 ringgit.

A break below 3,974 ringgit could confirm the continuation of the downtrend towards 3,892-3,931 ringgit range.

On the daily chart, the contract seems to be stabilizing around a support of 4,022 ringgit, as suggested by the inverted hammer on Tuesday.

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A consolidation or bounce is highly likely, because the contract is still in a big consolidation phase. After three days of successive drops, a bounce looks a natural reaction.