05/12/2017 (The Edge Markets MY) - SINGAPORE (Dec 5): The palm oil third-month contract may fall into a range of 2,519 ringgit to 2,555 ringgit per tonne, as suggested by its wave pattern and a Fibonacci projection analysis.

The downtrend from the Oct 30 high of 2,855 ringgit consists of five waves. So far, only four have completed. The fifth wave could be travelling towards a range of 2,462 ringgit-2,519 ringgit, formed by the 161.8% and the 138.2% projection levels of a bigger wave C.

Strategically, the target zone of 2,519-2,555 ringgit will be confirmed, when palm oil breaks the support at 2,577 ringgit. Resistance is at 2,612 ringgit, a break above which could lead to a gain to 2,645 ringgit. - by Wang Tao, Reuters