SINGAPORE: Palm oil remains neutral in a range of 6,423-6,577 ringgit per tonne, and an escape could suggest a direction.
The range is formed by the 38.2% and 50% retracements of the downtrend from 7,229 ringgit.
A break below 6,423 ringgit could open the way towards 6,233 ringgit, while a break above 6,577 ringgit may lead to a gain into 6,731-6,921 ringgit range.
Palm ends inch lower on Indonesian supply jitters
The long upper shadows of the two candlesticks on June 3 and June 8 visualize the strong resistance around 6,577 ringgit.
With another black candlestick appearing on Wednesday, the bias looks towards the downside.
A closer look on the hourly chart reveals a similar neutral range of 6,386-6,591 ringgit.
After failing twice to break 6,591 ringgit, the contract is likely to break 6,386 ringgit and fall towards 6,204 ringgit.
A break above 6,499 ringgit may lead to a gain to 6,591 ringgit.
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