The support and the resistance are identified respectively as the 61.8 percent and the 50 percent retracements on the uptrend from the September 1986 low of 424 ringgit to 4,486 ringgit.
The long-term consolidation from 4,486 ringgit has been well controlled by the various retracements. Palm oil started a very decent bounce when it failed to break below 1,976 ringgit in August 2015. Another bounce is expected to occur when the contract drops to 1,976 ringgit.
Strengthening the support at 1,976 ringgit is another one at 1,902 ringgit, the 61.8 percent projection level of a downward wave C from 3,202 ringgit. These two resistances will form a strong support zone to trigger a bounce.
It is not very clear how strong the coming bounce will be. Most likely it will be limited to 2,455 ringgit, as a head-and-shoulders developing between March 2016 and December 2017 suggests a bearish target around 1,500 ringgit.
An immediate support at 2,150 ringgit looks vulnerable, as a weak rebound triggered by this level has been reversed. The reversal signals a continuation of the wave C towards 1,976 ringgit.