NY cocoa may retest resistance at $2,217

SINGAPORE: New York March cocoa may retest a resistance at $2,217 per tonne, as suggested by its wave pattern and a Fibonacci projection analysis.

The resistance at the 61.8 percent Fibonacci projection level of an upward wave c, the third wave of a three-wave cycle from the Jan. 11 low of $2,106.

This wave is likely to extend to $2,275, its 100 percent Fibonacci projection level, as the chart pattern from Jan. 3 looks like an inverted head-and-shoulders. A further correction from the current level could be limited to $2,159.