New York cocoa may retest support at $2,317

SINGAPORE: New York July cocoa may retest a support at $2,317 per tonne, a break below which could cause a loss to $2,281. The support is identified as the 38.2 percent retracement on the uptrend from $2,128 to $2,434. A head-and-shoulders forming around $2,434 confirms a reversal of the uptrend from $2,128.

It is not very clear how deep the correction from $2,434 will be. It may extend to $2,281 or $2,245. The bounce triggered by the support at $2,317 could be temporary, to end around $2,362. A break above $2,362 could lead to a gain to $2,389.