NY cocoa may retest resistance at $2,281

SINGAPORE: New York July cocoa may retest a resistance at $2,281 per tonne, a break above which could lead to a gain towards the next resistance at $2,317.

These resistances are identified as the 50 percent and the 38.2 percent retracements of the uptrend from $2,128 to $2,434. The bounce triggered by the key support at $2,245 may extend a bit to $2,317, as suggested by a falling channel. A fall below $2,265 could be limited to $2,245.

On the daily chart, another retracement analysis on the downtrend from $2,825 to $2,043 reveals a support at $2,228, the 23.6 percent level, which triggered a bounce towards $2,342. A break below $2,228 could cause a loss to $2,157.