Markets

NY cocoa may rebound to $2,846/T

SINGAPORE : New York cocoa may rebound more to $2,846 per tonne, as a fall from the Aug. 30 high of $3,145 could have

Published September 21, 2011 Updated September 21, 2011 09:02am

1 min

By Shoaib Ur Rehman

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The fall is too linear to be sustainable, as a bullish divergence on the RSI indicator suggests cocoa is technically strongest now, especially after the possible completion of a five-wave cycle.

On the daily candlesticks chart, the candlesticks of the previous two trading sessions together formed a "harami cross", a bullish reversal pattern, indicating an exhaustion of the fall.

Strategically, a rise above $2,800 will extend to $2,846, the presumed wave "4" peak, while a fall below a support at $2,738, an hourly chart low, will confirm the resumption the downtrend.

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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