SINGAPORE: Palm oil looks neutral in a range of 5,744 ringgit to 5,966 ringgit per tonne, and an escape could suggest a direction.
The drop triggered by the resistance at 5,966 ringgit is too shallow to confirm a reversal of the rise from the April 1 low of 5,477 ringgit.
However, before the contract breaks 5,966 ringgit, the continuation of the rise will not be confirmed either.
A break could lead to a gain into 6,104-6,326 ringgit range.
Palm falls more than 1pc on higher production estimates
A break below 5,744 ringgit could open the way towards 5,512-5,606 ringgit range. On the daily chart, the contract seems to have stabilized around a support at 5,757 ringgit.
How reliable this stabilization is would still be subject to a further observation, as a retracement analysis on the uptrend from 4,245 ringgit suggests one last drop towards a key support at 5,400 ringgit.
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