SINGAPORE: New York September cocoa may stabilize around a support of $2,326 per tonne, and then hover around this level or bounce towards $2,368.
The support is provided by the 50% retracement on the uptrend from $2,063 to $2,589. It is strengthened by another one at $2,312, the 114.6% projection level of a downward wave c from $2,538.
The bullish divergence on the hourly MACD suggests an exhaustion of the fall. A decent bounce could be due. A break below $2,312 could cause a fall to $2,264.
Note: Cocoa report is published twice a week - Wednesday and Friday.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of to retrieve the original reports.
** 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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