Palm oil may fall into 3,602-3,691 ringgit range

SINGAPORE: Palm oil may fall into a range of 3,602-3,691 ringgit per tonne, to cover a gap forming on July 1.

The fall from the July 6 high of 3,978 ringgit does not look like a pullback towards a falling trendline, as it may extend far below this line, due to the heavy loss of the overnight CBOT grains.

The break above the trendline will prove to be false.

The downtrend from 4,525 ringgit could resume. A break above 3,931 ringgit, which is highly unlikely, could lead to a gain into a range of 4,009-4,105 ringgit.

On the daily chart, the contract failed to break a resistance at 3,915 ringgit, which is strengthened by a similar one established by a rising trendline.

The failure marks the completion of a pullback towards the trendline. The contract may drop towards 3,537 ringgit over the next few days.

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