SINGAPORE: New York December cocoa looks exhausted and may retrace to a support at $ 3,259 per tonne.
The pattern from the Oct. 12 low of $ 3,026 consists of three waves and looks like a zigzag. A Fibonacci projection analysis reveals that first wave and the third wave are roughly equal in length, a signal that this pattern could have completed.
The analysis also reveals a support at $ 3,259, the 76.4 percent level, which blocks the way towards the 61.8 percent level at $ 3,229. Resistance is at $ 3,306, the 100 percent level, a break above which could open the way towards the 123.6 percent level at $ 3,353.
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.