29/05/2017 (The Times of India Business) - SINGAPORE, May 29 (Reuters) - Palm oil Aug. contract is expected to test a support at 2,539 ringgit per tonne, a break below which could cause a further loss to the next support at 2,506 ringgit.

These supports are identified respectively as the 61.8 Fibonacci and the 76.4 percent Fibonacci retracements of the uptrend from the May 4 low of $2,452 to the May 22 high of $2,681.

Working together with the support at 2,539 ringgit is another one at 2,540 ringgit, the 61.8 percent Fibonacci projection level of a downward wave c, which is the third wave of a presumed three-wave cycle from 2,681 ringgit.

Chances are palm oil may pause around 2,539 ringgit and then bounce towards 2,567 ringgit, even though the wave c is capable of travelling to 2,496 ringgit.

A break above 2,567 ringgit, may lead to a gain to 2,594 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 Sunil Nair)