SINGAPORE: New York September cocoa is expected to test a support at $2,118 per tonne, a break below which could cause a loss to the range of $1,971-$2,056.
The support is identified as the 76.4 percent projection level of a downward wave C from $2,594. After a pause around the former support at $2,209, the wave C has resumed towards $1,971.
The pattern from $2,943 looks like a flag, which suggests a target close to $1,971. A bounce may be limited to $2,209, now a resistance.
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.