29.08.2018 (The Edge Markets MY) - SINGAPORE (Aug 29): Palm oil may rise to RM2,277 per tonne, as it has cleared a resistance at RM2,224.

The resistance is identified as the 23.6% retracement of the downtrend from RM2,498 to RM2,140. The next resistance will be at RM2,277.

The bounce from the Aug 27 low of RM2,197 suggests the completion of a flat from the Aug 8 high of RM2,265.

The flat is a bullish continuation pattern, to be followed by a round of rally similar to the one from RM2,140. This rally will be driven by a wave C, the third wave of three-wave cycle from RM2,140.

A projection analysis suggests that the wave C could travel into the range of RM2,274-2,322, formed by its 61.8% and the 100% projection levels.

A break below RM2,224, now a support, may cause a loss limited to RM2,197.