SINGAPORE: Palm oil looks neutral in a range of 3,221-3,300 ringgit per tonne, and an escape could suggest a direction.

The range is formed by the 138.2% and the 161.8% projection levels of an uptrend from 2,746 ringgit. A break below 3,221 ringgit could cause a fall into 3,143-3,173 ringgit range.

However, the bias could be towards the upside, as the fall from the Jan. 6 high of 3,888 ringgit has completed. The completion was indicated by the five-wave structure of the fall and the bounce from around a support 3,173 ringgit.

This bounce is expected to extend towards the peak of a wave 4 around 3,348 ringgit. On the daily chart, the contract stabilized around a support at 3,148 ringgit, the 61.8% retracement on the uptrend from 2,691 ringgit to 3,888 ringgit.

The first round of the bounce seems to have ended around the resistance at 3,290 ringgit. Palm oil is expected to hover above 3,148 ringgit for a few days and seek a chance of breaking above 3,290 ringgit to rise towards 3,431 ringgit.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.