NY cocoa may retest resistance at $2,848

SINGAPORE: New York December cocoa may retest a resistance at $2,848 per tonne, as suggested by its wave pattern and a Fibonacci retracement analysis.

The bounce from the Sept. 30 low of $2,708 has not completed. It consists of three waves, so far, only two have unfolded. The third wave labelled c is driving cocoa towards $2,848, the 61.8 percent Fibonacci retracement of the downtrend from the Sept. 22 high of $2,934 to $2,708.

Support is at $2,761, a break below which could cause a loss to $2,708.