SINGAPORE: Palm oil looks neutral in a range of 6,220-6,423 ringgit per tonne, and an escape could suggest a direction.
The current move is controlled by two sets of retracements, respectively on the fall from 7,229 ringgit and the rise from 5,925 ringgit.
A break above 6,423 ringgit may lead to a gain into 6,516-6,557 ringgit range. However, the bias could be towards the downside, as US grains dropped sharply on Tuesday.
The drop would have a big impact on the opening price of palm oil.
Palm rises on firmer crude prices, May export data
A break below 6,220 ringgit may open the way towards 5,925-6,107 ringgit range.
On the daily chart, the contract may retest a trendline support around 6,115 ringgit, as a result of the fall in the overnight grain market.
A break below the trendline would signal the extension of the downtrend from 7,229 ringgit.
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