SINGAPORE: Palm oil looks neutral in a narrow zone of 6,290-6,409 ringgit a tonne, and an escape could suggest a direction.

A rising trendline from 5,477 ringgit has been broken.

The break signals a reversal of the uptrend. However, the break may turn out to be false, if the contract closes above 6,409 ringgit on Wednesday.

A break below 6,290 ringgit may confirm both a reversal of the uptrend and a target zone of 6,097-6,190 ringgit.

On the daily chart, the fall from 7,229 ringgit seems to be mathematically related to the preceding fall from 7,268 ringgit, as revealed by a projection analysis.

Palm oil may fall into 6,097-6,190 ringgit zone

The analysis suggests a drop towards 6,122 ringgit.