NY cocoa may retest resistance at $2,902

SINGAPORE: New York Sept. cocoa may retest a resistance at $2,902 per tonne, as it has found a support in a zone of $2,843-$2,868.

The zone is formed by the April 5 low and the 86.4 percent Fibonacci Fibonacci projection level of a downward wave C, the third wave of a presumed three-wave cycle from the May 3 high of $3,241.

The long-shadowed candlestick forming on July 27 looks like an inverted hammer, which is a bullish reversal pattern. Indeed, cocoa bounced sharply to $2,948 on the same day, indicating an exhaustion of the drop from the July 15 high of $3,166.

A break above $2,902, the 76.4 percent level, could open the way towards the 61.8 percent level at $2,953.