SINGAPORE: Palm oil may test a resistance zone of 3,729-3,740 ringgit per tonne, a break above which could lead to a gain to 3,797 ringgit.

The contract failed twice to break a support of 3,671 ringgit. T

he failures suggest the completion of a wave c from 3,916 ringgit.

A bounce seems to have been triggered, which could be as strong as the preceding wave b.

Even a weaker bounce may extend into 3,740-3,797 ringgit range.

A break below 3,671 ringgit could confirm the continuation of the downtrend towards 3,613 ringgit. On the daily chart, the support at 3,708 ringgit still works effectively.

India’s March palm oil imports rise

The doji forming around this support symbolizes a temporarily dissipation of the bearish momentum.

The contract is likely to stabilize around this level for one or two days, or bounce towards 3,859 ringgit.