NY cocoa may test resistance at $2,238

SINGAPORE: New York December cocoa may test a resistance at $2,238 per tonne, a break above which could lead to a gain to the next resistance at $2,299.

These resistances are identified respectively as the 61.8 percent and the 76.4 percent retracements of the downtrend from $2,397 to $1,982.

It is doubtful that cocoa could break $2,238, as this resistance itself would be strong enough to trigger a deep correction. Marking this barrier stronger is another similar one established by a falling trendline. Most likely, the contract could temporarily peak around $2,238.

A break below $2,190 could cause a loss to $2,141.