NY cocoa may retest support at $2,866

SINGAPORE: New York December cocoa is expected to retest a support at $2,866 per tonne, a break below which could cause a loss to $2,826.

The support is provided by the 86.4 percent Fibonacci retracement of the uptrend from the July 29 low of $2,826 to the Aug. 19 high of $3,120. Cocoa failed to overcome this barrier in its first attempt, but may succeed in its current attempt.

A falling channel suggests cocoa may fall below $2,826, to $2,790, around the channel line. A break above $2,895 could signal an extension of the bounce from the Aug. 31 low of $2,861, towards $2,938.