Monday, 20 July 2015 14:35
SINGAPORE: New York September cocoa may drop to $ 3,303 per tonne as it has broken support at $ 3,349.
Support was provided by the 200 percent Fibonacci projection level of an upward wave c, the third wave of a three-wave cycle that developed from the March 30 low of $ 2,679.
The next support will be at $ 3,303, the 186.4 percent level.
The bearish divergence on the daily RSI strongly suggests cocoa has been much overbought and a correction is due.
The target will be aborted should cocoa rises above $ 3,359.
No information in this analysis should be considered as being business, financial or legal advice.
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