SINGAPORE: Palm oil looks neutral in a range of 6,099-6,354 ringgit per tonne, and an escape could suggest a direction.
The contract is riding on a wave c, the third wave of a three-wave cycle from the May 20 low of 5,925 ringgit. This wave is supposed to travel above 6,354 ringgit.
However, the exact mode of this wave remains unknown. It could be linear, rapidly extending above 6,354 ringgit, or zigzagging, unfolding towards 6,099 ringgit first and then swinging towards 6,354 ringgit.
Regardless of its exact mode, this wave could eventually overcome the barrier at 6,354 ringgit and travel towards 6,582 ringgit.
Palm oil may retest resistance at 6,354 ringgit
A break below 6,099 ringgit may open the way towards 5,843-5,984 ringgit range. On the daily chart, a projection analysis reveals a similar neutral range of 6,122-6,334 ringgit.
Even though the near-term picture remains blurred, the uptrend from 4,245 ringgit looks steady, as the contract managed to hover above the rising trendline.
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