SINGAPORE: New York March cocoa is expected to fall to $2,173 per tonne, as it has broken a support at $2,224.
The support was provided by the 50 percent retracement on the uptrend from $2,008 to $2,439. The next support will be at $2,173, around which a bounce may start.
The downtrend from $2,439 has been developing within a falling channel. It seems that cocoa is poised to leave the channel and fall into a duplicated channel, which suggests a target around $2,110.
The target at $2,173 will be temporarily aborted should cocoa stand firm above $2,224.
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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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