SINGAPORE: Palm oil looks neutral in a range of 3,859-4,009 ringgit per tonne, and an escape could suggest a direction. A break above 4,009 ringgit may lead to a gain to 4,196 ringgit.
However, the contract seems to be riding on a wave C from 4,276 ringgit,which is expected to travel below 3,708 ringgit - the 61.8% retracement of the uptrend from 3,220 ringgit to 4,497 ringgit.
On the daily chart, the contract observes a set of retracements on the rise from 3,220 ringgit and a set of projection levels on the fall from 4,276 ringgit.
Palm oil is sandwiched in a narrow range of 3,888-3,980 and a wider range of 3,859-4,009 ringgit.
Palm oil extends losses to a third day
Trending signals temporarily remain mixed and will become clearer when palm oil gets out of these ranges. One thing is certain that the following move could be sharp, when the current consolidation is over.