SINGAPORE: New York July cocoa may retest a resistance at $2,387 per tonne, a break above which could lead to a gain to $2,423.
The contract is presumed to be riding on a wave C from $2,234. This wave consists of three smaller waves. A projection analysis on the target of the wave C reveals a support at $2,279, the 14.6 percent level.
Strengthening this support is a similar one established by a rising trendline. The big white candlestick forming on May 9 indicates a resumption of the wave C. At its full capacity, this wave could travel to $2,540. At least, it may extend to $2,423.
A break below $2,279 may cause a loss to $2,234.
Note: Cocoa report is published twice a week, Wednesday and Friday.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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. **
Comments
Comments are closed for this article.