SINGAPORE: New York December cocoa may test a support at $2,306 per tonne, a break below which could open the way towards $2,280.
The contract is presumed to be riding on a wave C, the third wave of a three-wave cycle from the Aug. 11 high of $2,469.
This wave is expected to travel below the bottom of the wave A at $2,314.
Indeed, cocoa has briefly pierced below a key support of $2,325, which looks like the final barrier towards $2,280.
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Resistance is at $2,336, a break above which may lead to a gain to $2,352.