Tuesday, 04 August 2015 13:40
SINGAPORE: New York September cocoa is expected to drop into a range of $ 3,092-$ 3,126 per tonne, as it has broken a support at $ 3,176.
The support is provided by the 61.8 percent Fibonacci retracement on the rise from the June 1 low of $ 3,046 to the July 15 high of $ 3,386. The next support zone will be formed by the 86.4 percent and the 76.4 percent retracements.
A break above $ 3,176, now a resistance, will make signals neutral. Only a further gain above $ 3,216 could indicate the formation of a bottom around $ 3,176, and the 38.2 percent level at $ 3,256 will be targeted then.
