NY cocoa may test support at $1,968

SINGAPORE: New York December cocoa may test a support at $1,968 per tonne, a break below which could cause a loss to the next support at $1,917.

These supports are identified respectively as the 114.6 percent and the 123.6 percent projection levels of a downtrend from $2,607. A falling trendline suggests the trend may extend to $1,836.

Cocoa approached $1,968, but failed to break it. This time, the support may not hold. The target at $1,836 looks too far to be realistic, a more realistic target will be at $1,917.

Resistance is at $2,049, a break above which could lead to a gain to $2,125.