Strategically, the target zone will be confirmed when cocoa breaks the nearest resistance at $2,249, the 38.2 percent projection level of the wave C.

When cocoa failed to break $2,249 in its first attempt on Dec. 7, it retraced deeply. A second failure to break this level could trigger a shallower correction to $2,190.

A break above $2,249 will confirm not only the target range of $2,296-2,343, but also a double-bottom, which suggests a target around $2,402.

* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

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.