SINGAPORE: New York December cocoa may drop more to $2,080 per tonne, following its failure to break a resistance at $2,238.
The resistance is identified as the 61.8 percent retracement of the downtrend from $2,397 to $1,982. Working together with this resistance is another one established by a falling trendline.
The intact trendline suggests the downtrend from $2,397 or $2,899 remains steady, which may extend to $1,982 again. A break above $2,190 could be a major victory of bulls over bears. The break will signal a reversal of the downtrend. A bullish target zone of $2,238-$2,299 will be established then.
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Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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.
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Source: Brecorder
