SINGAPORE: New York May cocoa may extend gains to $2,855 per tonne, as suggested by a projection analysis. The contract seems to be riding on a wave c which has briefly pierced above its $76.4% projection level of $2,821.
This wave is highly likely to extend to $2,855.
A retracement analysis on the downtrend from $2,856 reveals that more than 76.4% reversal the trend has been reversed. Chances are that this high is revisited.
A break below $2,801 could trigger a drop into $2,767-$2,784 range.