SINGAPORE: New York July cocoa may test a resistance at $2,062 per tonne, as suggested by its wave pattern and a Fibonacci projection analysis.
The contract is riding on a wave C, the third wave of a three-wave cycle from the May 4 low of $1,772. This wave has travelled above $2,025, its 50 percent Fibonacci projection level, and is heading towards $2,062.
This wave is capable of travelling to $2,183. However, it must overcome the strong barrier at $2,062 before heading towards $2,183. A break below $2,025 may cause a loss towards $2,000, a support established by a falling trendline.
A break below $1,988 may cause a loss to $1,942.
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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