SINGAPORE: New York May cocoa may drop to $2,504 per tonne, as suggested by a retracement analysis.

The contract has remained below a resistance at $2,564 for two days. It is highly to extend its loss to $2,504.

The consolidation below $2,564 is taking the shape of a small triangle, which could be a part of more bearish pennant developing from the March 3 high of $2,667.

A break above $2,564 may lead to a gain to $2,639.

Note: The cocoa report is published twice a week - Wednesday and Friday.

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