SINGAPORE: Palm oil may break a support at 3,761 ringgit per tonne and fall to 3,659 ringgit, as it has completed a bounce from 3,495 ringgit.

The bounce failed to extend above a key resistance at 3,926 ringgit. The pattern around this barrier looks like a small head-and-shoulders, which will be confirmed when palm oil breaks 3,761 ringgit.

The pattern suggests a target of 3,597 ringgit. A break above 3,844 ringgit may lead to a gain limited to 3,926 ringgit.

On the daily chart, a shooting star formed on April 8, after the hanging man on April 7. A black candlestick appeared on April 9.

These bearish signals crowded together to confirm a completion of the bounce from 3,495 ringgit.

The contract may retreat towards a rising trendline again, like what it did when high-low bottoms were developing.

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