SINGAPORE: New York March cocoa may break a support at $2,103 per tonne, and fall to the next support at $2,063, as suggested by a retracement analysis and a trendline.

The support is provided by the 76.4 percent retracement on the uptrend from $2,008 to $2,410. It is the third time that cocoa tests this support. Most likely it will succeed.

It is also the second time that cocoa broke a rising trendline. The break is reliable. It indicates cocoa may revisit the low at $2,008. A rise above the trendline resistance around $2,130 could lead to a gain limited to $2,162.

 

Copyright Reuters, 2018