NY cocoa may extend gains into $2,718-$2,735 range

SINGAPORE: New York May cocoa may extend gains into a range of $2,718-$2,735 per tonne, as a five-wave cycle from $2,856 has completed.

All long the way, the cycle had been unfolding within a channel. The sudden escape of the contract from the channel sufficiently indicates the reversal of the downtrend.

A retracement analysis on the trend reveals a target range of $2,730-$2,760.

Ivory Coast 2022/23 cocoa arrivals seen at 1.688mn T by March

A projection analysis on the fall from $2,804 offers more precise target range of $2,718-$2,735. Immediate support is at $2,666, a break below which could trigger a drop into $2,636-$2,649 range.