SINGAPORE: New York July cocoa is biased to break a support at $2,279 per tonne and fall towards a range of $2,234-$2,255.
The support is identified as the 14.6% projection level of an upward wave C from $2,234. The three candlesticks forming between May 10 and May 14 are with long upper shadows. They indicate strong resistance at $2,351.
Following its failure to break the resistance, cocoa fell below a rising trendline. The fall signals a reversal of the uptrend from $2,128.
A break above $2,306 may lead to a gain to $2,351.
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.
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