SINGAPORE: New York July cocoa may fall more to $2,594 per tonne, as suggested by a head-and-shoulders and a Fibonacci ratio analysis.
The pattern has been confirmed, suggesting a target around $2,450, which looks too far away. Cocoa is riding on a wave c from $2,851. A projection analysis suggests a more realistic target at $2,594, the 100 percent level.
A break below $2,594 could cause a loss to $2,516, the 38.2 percent retracement of the uptrend from $1,826 to $2,943. A bounce may be limited to $2,723.
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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