19/07/2017 (The Times Of India Business) - SINGAPORE, July 19 (Reuters) - Palm oil Oct. contract is expected to test a support at 2,501 ringgit per tonne, as its correction from the July 11 high of 2,585 ringgit may extend further.

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

The support is provided by the 50 percent Fibonacci retracement of the uptrend from the June 22 low of 2,417 ringgit to 2,585 ringgit. The uptrend from the June 8 low of 2,376 ringgit has adopted a three-wave mode. The second wave labeled b ended at 2,417 ringgit, which may be approached, according to wave theory.

A part of the uptrend has been developing within a rising channel, based on which, a duplicated channel suggests a further drop to 2,440 ringgit. The duration and the depth of the drop from 2,585 ringgit look good enough to confirm a reversal of the uptrend.

Resistance is at 2,521 ringgit, a break above which may lead to a gain limited to 2,545 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)