NY cocoa may fall to $1,988

SINGAPORE: New York July cocoa may break a support at $2,052 per tonne and fall to the next support at $1,988, as it failed to break above a resistance at $2,062.

These supports and resistance are identified respectively as the 50 percent and the 38.2 percent Fibonacci projection levels of an upward wave C, the third wave of a three-wave cycle from the May 4 low of $1,772.

The resistance at $2,062 could have caused a pullback towards a falling trendline, which suggests a target around $1,988. A break above $2,062 could lead to a gain to $2,108.