NY cocoa may stabilize around $2,281

SINGAPORE: New York July cocoa may stabilize around a support at $2,281 per tonne and bounce towards a resistance at $2,317, as suggested by a retracement analysis.

The support and resistance are identified as the 50 percent and the 38.2 percent retracements on the uptrend from $2,128 to $2,434.

The former support at $2,317 caused a sharp bounce. The current support is expected to be stronger, to trigger another one. A fall to the April 23 low of $2,275 may confirm a break below $2,281 and the next support at $2,245 will be approached.

Note: Cocoa report is published twice a week, Wednesday and Friday.

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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.