02/08/2017 (Times of India) - SINGAPORE, Aug 2 (Reuters) - The palm oil October contract may retrace more to 2,623 ringgit per tonne, as it failed to break a strong resistance at 2,703 ringgit.

The resistance is identified as the 100 percent Fibonacci projection level of an upward wave (c), the third wave of a three-wave cycle from the June 8 low of 2,376 ringgit.

The failure of the contract to break 2,703 ringgit indicates either a reversal of the uptrend from 2,376 ringgit or a deep correction that may match the one from the July 11 high of 2,585 ringgit.

A break below 2,623 ringgit could cause a further loss to 2,599 ringgit, while a break above the resistance at 2,675 ringgit could lead to a gain to 2,703 ringgit.