SINGAPORE: New York March cocoa may approach a resistance at $2,274 per tonne again, as its bounce from the Jan. 31 low of $2,161 looks incomplete.
The resistance is provided by the 38.2 percent retracement on the uptrend from $2,008 to $2,439. Three waves make up the bounce. So far, only two waves have unfolded. The third wave labelled (c) is expected to travel to $2,274.
A fall below the Thursday low of $2,188 could signal the continuation of the downtrend towards $2,110. The support at $2,173 may fail to hold then.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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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