SINGAPORE: Palm oil looks neutral in a range of 6,423-6,577 ringgit per tonne, and an escape could suggest a direction. The range is formed by the 38.2% and 50% retracements of the downtrend from 7,229 ringgit.
A break below 6,423 ringgit could open the way towards 6,233 ringgit, while a break above 6,577 ringgit may lead to a gain into 6,731-6,921 ringgit range.
The pause of the contract around 6,577 ringgit suggests a weakness of the market.
The rise from the May 31 low of 6,204 ringgit consists of many small candlesticks which also indicates weak market. The bias could be toward the downside.
Palm close at near two-week high
On the hourly chart, the contact failed to break a resistance at 6,591 ringgit again. Chances are it may retrace towards 6,386 ringgit.
A break above 6,591 ringgit, however, would lead to a gain into 6,682-6,795 ringgit range.
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