31/7/25 Still Sideways to Down Pullback PhaseCrude Palm Oil FuturesMYX:FCPO1!Tech_Trader88Wednesday’s candlestick (Jul 30) was a small bull bar with a prominent tail above. In our last report, we said traders would see if the bulls could create a retest of the July 24 high and a breakout above, or if the market would trade slightly higher but stall around or below the July 24 high, forming bear bars instead. The market traded slightly higher for the day. The bulls want a retest of the April high. They want any pullback to lack follow-through selling, similar to the last few pullbacks (July 7, July 11, July 15, and July 22). They want the pullback to be shallow (overlapping candlesticks, bull bars and long tails below candlesticks). They want the 20-day EMA to act as a support level. So far, this appears to be the case. If the market trades lower, they want it to form a double bottom bull flag with the July 29 low. They want another strong leg up to form the wedge pattern, with the first two legs being Jun 20 and July 24. The bears want a reversal from a large wedge pattern (May 15, Jun 20, and Jul 24) and an embedded wedge (Jul 14, Jul 18, and Jul 24). They want a major lower high vs the April high. Previously, the bears were unable to create follow-through selling in the last four selloff attempts (July 7, July 11, July 15, and July 22). They were also unable to create follow-through selling on July 29. They see Tuesday (July 30) as a pullback and want at least a small second leg sideways to down, retesting the July 29 low. They need to create consecutive bear bars closing near their lows and trading below the 20-day EMA to show they are back in control. If the market trades higher, they want it to stall around the July 24 high area, forming a double top. Production for July is expected to be around the same level as June or slightly higher. August may be flat or down. Refineries' appetite to buy looks decent recently. Export: Perhaps down -8% for the month. So far, the buying pressure is slightly stronger than the selling pressure, but not in an overwhelming way yet (no strong consecutive bull bars closing near their highs). However, the move up has lasted a considerable amount of time. The market may have to form a pullback before it moves higher again. The pullback phase is still underway. Traders will assess the strength of the pullback to determine whether it will be a minor correction or a more significant event. So far, the pullback appears to be minor. The bears need to create follow-through selling to show they are back in control, something they couldn't do in the last few pullbacks (July 7, July 11, July 15, Jul 22, and Jul 29). For tomorrow (Thursday, July 31), traders will see if the bears can create a strong retest of the July 29 low. Or will the market trade slightly lower, but find support around the 20-day EMA, closing the day with a long tail below or a bull body instead? Andrew