22/06/2017 (The Times of India Business) - SINGAPORE, June 22 (Reuters) - Palm oil Sept. contract may fall more to 2,420 ringgit per tonne, as suggested by its wave pattern and a Fibonacci ratio analysis.

The contract is riding on a wave c, the third wave of a three-wave cycle from the June 19 high of 2,515 ringgit. This wave is capable of travelling to 2,421 ringgit, its 100 percent Fibonacci projection level.

A Fibonacci retracement analysis on the downtrend from the May 18 high of 2,605 ringgit to the June 8 low of 2,390 ringgit reveals that palm oil has briefly pierced below the support at 2,438 ringgit, the 61.8 percent level. It is highly likely to extend its fall to 2,420 ringgit, which almost coincides with 2,421 ringgit.

A break above 2,453 ringgit could lead to a gain to 2,467 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 Vyas Mohan)