20.07.2018 (The Edge Markets MY) - SINGAPORE (July 20): Palm oil looks neutral in a range of 2,187-2,218 ringgit per tonne, and an escape could suggest a direction.

The range is formed by the 61.8 percent and the 50 percent projection levels on a downward wave C from 2,348 ringgit. A break below 2,187 ringgit could cause a loss to 2,149 ringgit. However, the bias could be towards the upside.

The bounce from the July 13 low of 2,144 ringgit looks similar to the one from the June 19 low of 2,238 ringgit. A falling channel suggests the current bounce may extend into the range of 2,249-2,287 ringgit. A break above 2,218 ringgit could confirm the extension.

On the daily chart, the break below the July 12, 2016 low of 2,186 ringgit proves to be false. This false break indicates that either the downward wave C from 2,896 ringgit is over or the current bounce would extend further. – Reuters