SINGAPORE: Palm oil looks neutral in a range of 3,659-3,761 ringgit per tonne, and an escape could suggest a direction.

The bounce triggered by the support at 3,659 ringgit could be classified as a pullback towards the neckline of a head-and-shoulders.

Based on this assumption, the contract may retest a support at 3,659 ringgit and fall to 3,597 ringgit. A break above 3,761 ringgit could lead to a gain into a zone of 3,844-3,926 ringgit.

On the daily chart, a high-low bottom is developing.

A rising trendline suggests a further slide towards the narrow zone of 3,544-3,597 ringgit.

The uptrend so far remains intact and may resume once the current fall ends around 3,597 ringgit.

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