NY cocoa may drop to $2,537 after minor bounce

SINGAPORE: New York December cocoa may break a support at $2,572 per tonne and drop to $2,537, probably after a minor bounce.

The rise from $2,537 has been so much reversed that this low is highly likely to be revisited. However, a bullish divergence appeared on the hourly RSI.

It signals a dissipation of the bearish momentum and a coming bounce.

A break above $2,597 could lead to a gain into $2,621-$2,634 range.

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