SINGAPORE: New York March cocoa is expected to break a support at $2,132 per tonne and fall to the next support at $2,103, driven by a wave c.
This is the third wave of a three-wave cycle from $2,410. A projection analysis suggests this wave may end around either $2,132 or $2,046, respectively its 61.8 percent and 100 percent projection levels.
A retracement analysis on the uptrend from $2,008 to $2,410 suggests a further drop to $2,103, as the contract has broken $2,162, the 61.8 percent level. Once cocoa falls to $2,103, it will have a much better chance of sliding to $2,046.
A bounce may be limited to $2,162.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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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