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.
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Source: Brecorder
