SINGAPORE: New York March cocoa may break a support at $2,343 per tonne and fall to the next support at $2,296, as suggested by its wave pattern and a projection analysis.
These supports are identified respectively as the 61.8 percent and the 50 percent projection levels of an upward wave C from $2,095.
This wave seems to have peaked around a resistance at $2,422. The following correction takes such a long time that it strongly indicates a reversal of the uptrend. A rising trendline was broken, further indicating a trend reversal.
Only a break above $2,402 could confirm the continuation of the uptrend towards $2,442.
* 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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