SINGAPORE: New York July cocoa may edge up to a resistance at $2,880 per tonne, as suggested by a projection analysis and a triangle.
The contract is riding on a wave C from $2,474. A projection analysis shows that this wave has cleared resistance at $2,827. It is heading towards the next resistance at $2,880, which is pointed by the upper trendline of a triangle as well.
It is not very clear that cocoa could break $2,880 and rise further, as the triangle developed after a steep rise from $2,474. It could turn out to be a continuation pattern or a top pattern.
A break above $2,880 could lead to a gain to $2,942, while a break below $2,775 could cause a loss to $2,692.
Note: Cocoa report will be published twice a week, on Wednesday and Friday.
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.
Source: Brecorder
