NY cocoa may drop more to $2,080 

SINGAPORE: New York December cocoa may drop more to $2,080 per tonne, following its failure to break a resistance at $2,238.

The resistance is identified as the 61.8 percent retracement of the downtrend from $2,397 to $1,982. Working together with this resistance is another one established by a falling trendline.

The intact trendline suggests the downtrend from $2,397 or $2,899 remains steady, which may extend to $1,982 again. A break above $2,190 could be a major victory of bulls over bears. The break will signal a reversal of the downtrend. A bullish target zone of $2,238-$2,299 will be established then.