06/11/2017 (Times of India) - SINGAPORE, Nov 6 (Reuters) - The palm oil January contract may drop to 2,779 ringgit per tonne, as it has broken a support at 2,808 ringgit.

For a chart: http://tmsnrt.rs/2hdQMmx

The support was established at the 23.6 percent Fibonacci retracement of the uptrend from 2,656 ringgit to 2,855 ringgit. The next support will be at 2,779 ringgit, a break below which could cause a further loss to 2,756 ringgit.

A Fibonacci projection analysis reveals that the contract found a temporary support at 2,792 ringgit, the 100 percent level of a downward wave c. However, it is very doubtful if the support will hold further.

 A bounce will be regarded as a pullback towards a rising trendline. It may be limited to 2,826 ringgit.

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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. ** ($1 = 4.4430 ringgit) (Reporting by Wang Tao; Editing by Biju Dwarakanath)