Monday, 31 August 2015 13:47
SINGAPORE: New York December cocoa is expected to test a support $ 3,045 per tonne, with a good chance of breaking below this level and falling more towards $ 2,989.
The support is provided by the 14.6 percent Fibonacci retracement on the fall from the July 15 high of $ 3,375 to the Aug. 24 low of $ 2,989. Cocoa failed to break the resistance at $ 3,136 after two attempts, triggering the formation of a small double-top, which suggests a target at $ 2,989.
A break above the resistance at $ 3,080, the 23.6 percent level, may lead to a gain to the 38.2 percent level at $ 3,136.
