NY cocoa may fall further to $2,938

SINGAPORE: New York Dec. Cocoa may break a support at $2,973 per tonne and fall further to the next support at $2,938, as per wave pattern and Fibonacci retracement analysis.

These supports are at the 50 percent and the 61.8 percent Fibonacci retracements, respectively, of the uptrend from the July 29 low of $2,826 to the Aug. 19 high of $3,120.

The trend consists of three waves, and the second wave, labeled b, has ended around $2,938. Wave theory suggests that this level could be revisited. Any bounce from current level could be capped at $3,035, a trendline resistance.