SINGAPORE: New York March cocoa is biased to revisit its Feb. 7 low of $1,988 per tonne as it faces a strong resistance at $2,065 per tonne.
The resistance is provided by the 61.8 percent retracement on the drop from the Nov. 10, 2017 high of $2,226 to the Dec. 22, 2017 low of $1,804.
Cocoa failed twice to overcome this barrier. The failures suggest a completion of the uptrend from $1,804. The contract has briefly pierced below the support at $2,015. Despite the fact that it climbed above this level again, the drop from the Feb. 5 high of $2,067 looks incomplete.
A break above $2,065 could open the way towards $2,126.
Note: Cocoa report will be published twice a week, on Wednesday and Friday.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Comments
Comments are closed for this article.