SINGAPORE: New York September cocoa may retest a support at $2,388 per tonne, a break below which could cause a fall towards $2,326.
The support is provided by the 38.2% retracement on the uptrend from $2,063 to $2,148. The bounce triggered by this support could have ended below a resistance at $2,465.
The fall from the July 8 high of $2,589 has been also controlled by another set of retracements on the uptrend to this high from $2,148.
These two retracement analyses suggest a target range of $2,316-$2,326. A break above $2,465 may lead to a gain limited to $2,485.
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. **
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