SINGAPORE: Palm oil looks neutral in a range of 4,090-4,267 ringgit per tonne, and an escape could suggest a direction.

A break above 4,267 ringgit could lead to a gain into 4,398-4,588 ringgit.

However, the contract’s failure to break this level in its first attempt suggests a completion of the bounce from the July 6 low of 3,735 ringgit.

A break below 4,090 ringgit could open the way towards 3,782-3,900 ringgit range.

Palm oil may test resistance at 4,398 ringgit

On the daily chart, the long-shadowed hammers on July 6 and July 7 formed a strong reversal pattern, confirming the completion of a five-wave cycle.

Even though the readings on the hourly chart suggest a downside bias, over the next one or two weeks, the main theme could be a gradual reversal of the drop from the June 28 high of 5,048 ringgit.