SINGAPORE: Palm oil remains neutral in a range of 3,598-3,857 ringgit per tonne, and an escape could suggest a direction.
A break below 3,598 ringgit could trigger a drop into 3,438-3,489 ringgit range, while a break above 3,857 ringgit could lead to a gain to 4,085 ringgit.
Following its two failures to break 3,857 ringgit, the contract may have become too weak to retest this level.
Instead, it is highly likely to test the support at 3,598 ringgit.
On the daily chart, signals are mixed.
The bullish divergence has built on RSI, suggesting a further bounce.
However, so far, the bounce has been disappointingly weak. In the meantime, the downtrend looks incomplete, as a projection analysis marks a target of 2,963 ringgit.
A further development of chart is needed to evaluate its direction.
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