SINGAPORE: New York March cocoa may test a resistance at $2,162 per tonne, as it has found a support at $2,103.
The resistance and the support are identified as the 61.8 percent and the 76.4 percent retracements on the uptrend from $2,008 to $2,410. Making the support stronger is another similar one established by a rising trendline. A break above $2,162 could lead to a gain to $2,209.
A break below $2,103 could be disastrous to bulls, as a small head-and-shoulders developing from Nov. 26 will be confirmed. It suggests a target around $2,008.
* 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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