NY cocoa may test $2,507; upside limited

SINGAPORE: New York March cocoa may test a resistance at $2,507 per tonne, and a break could lead to a gain into the $2,538 to $2,568 range.

The small congestion area forming between Dec. 3 and Dec. 7 signals either an accumulation of the bullish momentum or an exhaustion of the rise.

As long as the contract remains above the support zone of $2,445 to $2,770, the uptrend from $2,333 is likely to extend further.

A break below $2,445 could confirm a reversal of the trend.

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