13/07/2017 (The Times of India Business) - SINGAPORE, July 13 (Reuters) - Palm oil Sept. contract may slide more to 2,551 ringgit per tonne, as suggested by a Fibonacci projection analysis, the bearish divergence on the hourly RSI and a rising channel.

For a chart: http://tmsnrt.rs/2tg3lxG

Wave pattern shows that the uptrend from the June 8 low of 2,390 ringgit has adopted a three-wave mode. A Fibonacci projection analysis on the target of the third wave labeled c reveals a strong resistance at 2,614 ringgit, the 150 percent level, which has caused the current correction.

This correction could be similar to the one from the June 19 high of 2,515 ringgit. The bearish divergence simply signals a further dip from the current level. A rising channel indicates a correction target around 2,534 ringgit.

Resistance is at 2,599 ringgit, a break above which could signal the extension of the wave c towards 2,628 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)