SINGAPORE: New York May cocoa looks neutral in a narrow range of $2,450-$2,525 per tonne, and an escape could suggest a direction.
The range is formed by the 23.6 percent and the 14.6 percent retracements on the uptrend from $1,812 to $2,647. A rise above $2,525 may be extended to $2,589.
A break below $2,450 will confirm both a target at $2,328 and a small double-top, which is a typical top pattern, indicating the reversal of the uptrend.
The symmetrical nature of the chart suggests that cocoa may bounce a bit further to $2,589 before falling again.
Note: Cocoa report will be published twice a week, on Wednesday and Friday.
No information in this analysis should be considered as being business, financial or legal advice.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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