28/07/2017 (Reuters)  -The palm oil October contract is expected to rise more into a range of 2,675-2,703 ringgit per tonne, driven by a powerful wave c.

This is the third wave of a three-wave cycle from the June 8 low of 2,376 ringgit. A Fibonacci projection analysis reveals that the wave c has travelled above its 61.8 percent level at 2,623 ringgit. Chances are it may extend to 2,703 ringgit. A rising trendline indicates a target range of 2,675-2,703 ringgit as well.

Five smaller waves will make up the wave c. The fiercest third wave labelled 3 could be strong enough to travel above 2,703 ringgit. Support is at 2,599 ringgit, a break below which could cause a loss to 2,574 ringgit.

Source: Reuters