07/12/2017 (The Edge Markets MY) - SINGAPORE (Dec 7): The palm oil third-month contract may test a support at RM2,519 per tonne, a break below which could cause a loss to the next support at RM2,491.

These supports are identified respectively as the 138.2% and the 150% projection levels of a downward wave C.

A small head-and-shoulders in the circled part has been confirmed, suggesting a lower target at RM2,462. A moderate bounce may occur around RM2,519. The bounce will be regarded as a pullback towards the neckline of the head-and-shoulders.