01/06/2022 (Business Recorder), Singapore - Palm oil looks neutral in a range of 6,220-6,423 ringgit per tonne, and an escape could suggest a direction.

The current move is controlled by two sets of retracements, respectively on the fall from 7,229 ringgit and the rise from 5,925 ringgit.

A break above 6,423 ringgit may lead to a gain into 6,516-6,557 ringgit range. However, the bias could be towards the downside, as US grains dropped sharply on Tuesday.

The drop would have a big impact on the opening price of palm oil.

Palm rises on firmer crude prices, May export data

A break below 6,220 ringgit may open the way towards 5,925-6,107 ringgit range.

On the daily chart, the contract may retest a trendline support around 6,115 ringgit, as a result of the fall in the overnight grain market.

A break below the trendline would signal the extension of the downtrend from 7,229 ringgit.

https://www.brecorder.com/news/40177062/palm-oil-neutral-in-6220-6423-ringgit-range