SINGAPORE: New York July cocoa may retest a resistance at $2,577 per tonne, a break above which could lead to a gain into the range of $2,604-$2,649.
The resistance is identified as the 114.6pc projection level of an upward wave C from $2,226.
This wave is likely to extend into the range of $2,649-$2,721, after travelling above $2,532.
A break below $2,532 could cause a loss to $2,460. On the daily chart, cocoa has broken the resistance at $2,526, the 61.8pc retracement on the downtrend from $2,825 to $2,043. The break opened the way towards $2,640.
Note: Cocoa report is published twice a week - Wednesday and Friday.
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Wang Tao is a Reuters market analyst for commodities and energy technicals.
The views expressed are his own.
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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