SINGAPORE: New York December cocoa may fall to $2,080 per tonne, following its third failure to break a resistance at $2,238.
The resistance is identified as the 61.8 percent retracement on the downtrend from $2,397 to $1,982. Cocoa failed thrice to overcome this barrier, which is strengthened by a similar resistance established by a falling trendline.
A top could be forming around $2,238. It signals a completion of the short uptrend from $1,982. A drop to $2,080 could confirm the continuation of the downtrend from $2,899.
Only a break above $2,238 could signal the extension of the uptrend towards $2,397.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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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