SINGAPORE: New York cocoa is biased to fall more to $2,086 per tonne, as the strong bearish momentum built on Wednesday indicates a flat wave pattern is developing.
The pattern consists of three waves, labelled "a-b-c", with wave "c" expected to develop approximately the same length as wave "a" and wave "b".
Resistance is at $2,200, provided by an ascending trendline.
The bearish target will be aborted should cocoa break above $2,200, with a bullish target to be established at $2,266, a 61.8 percent Fibonacci projection level of the wave "C".
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.
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