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New York cocoa to climb to $3,348/T in three months
SINGAPORE : New York cocoa is expected to rise to $3,348 per tonne over the next three months based on its wave pattern.
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SINGAPORE: New York cocoa is expected to rise to $3,348 per tonne over the next three months based on its wave pattern.
A long-term uptrend that started at the 2004 low of $1,298 is intact and will continue towards $3,800 within a rising wedge over a long period, propelled by a final wave "5".
The current wave "4" correction from the March high of $3,775 has completed as its inner wave "c" stopped above a pivotal support at $2,832, jointly provided by a 61.8 percent Fibonacci projection level and the lower trend line of the wedge.
The bullish outlook will be aborted if cocoa falls below $2,832, which would establish a bearish target at $2,500.
Copyright Reuters, 2011
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