SINGAPORE: New York July cocoa is expected to drop moderately to a support at $2,407 per tonne, before retesting a resistance at $2,462.

The contract is riding on a wave C, which is expected to travel above $2,552.

The first part of this wave completed around a falling trendline.

The second part is developing towards $2,407.

The wave C is expected to resume around $2,407.

A further fall below this level could make this wave count doubtful. A bearish target at $2,372 will be established then.

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

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