04/07/2017 (The Edge Markets) - SINGAPORE (July 4): Palm oil Sept. contract faces a resistance at 2,503 ringgit per tonne, a break above which could lead to a gain to the next resistance at 2,522 ringgit.

These resistances are identified respectively as 61.8 percent and the 76.4 percent Fibonacci projection levels of an upward wave c, the third wave of a three-wave cycle from the June 8 low of 2,390 ringgit.

The cycle has been developing within a wedge, which has been more or less confirmed as a bullish pattern, suggesting a target at 2,551 ringgit. A more realistic target will be 2,522 ringgit.

These targets will be aborted should palm oil break a support at 2,489 ringgit, as the break could signal a completion of the wave c. - Reuters