AIRLINK 172.61 Decreased By ▼ -3.12 (-1.78%)
BOP 13.24 Increased By ▲ 0.12 (0.91%)
CNERGY 7.41 Decreased By ▼ -0.13 (-1.72%)
FCCL 43.48 Decreased By ▼ -0.43 (-0.98%)
FFL 14.90 Decreased By ▼ -0.11 (-0.73%)
FLYNG 26.45 Decreased By ▼ -0.45 (-1.67%)
HUBC 129.60 Decreased By ▼ -0.63 (-0.48%)
HUMNL 13.35 Increased By ▲ 0.01 (0.07%)
KEL 4.44 Decreased By ▼ -0.06 (-1.33%)
KOSM 6.04 Decreased By ▼ -0.02 (-0.33%)
MLCF 55.50 Decreased By ▼ -0.53 (-0.95%)
OGDC 212.50 Decreased By ▼ -2.27 (-1.06%)
PACE 5.91 Decreased By ▼ -0.07 (-1.17%)
PAEL 41.10 Increased By ▲ 0.20 (0.49%)
PIAHCLA 16.39 Increased By ▲ 0.07 (0.43%)
PIBTL 9.58 Decreased By ▼ -0.17 (-1.74%)
POWER 11.53 Decreased By ▼ -0.23 (-1.96%)
PPL 178.85 Decreased By ▼ -2.63 (-1.45%)
PRL 33.75 Decreased By ▼ -0.47 (-1.37%)
PTC 22.82 Decreased By ▼ -0.24 (-1.04%)
SEARL 94.30 Decreased By ▼ -1.42 (-1.48%)
SILK 1.17 Increased By ▲ 0.03 (2.63%)
SSGC 35.05 Decreased By ▼ -0.40 (-1.13%)
SYM 15.75 No Change ▼ 0.00 (0%)
TELE 7.81 Decreased By ▼ -0.06 (-0.76%)
TPLP 10.81 Decreased By ▼ -0.17 (-1.55%)
TRG 60.81 Increased By ▲ 0.31 (0.51%)
WAVESAPP 10.76 Decreased By ▼ -0.05 (-0.46%)
WTL 1.33 Decreased By ▼ -0.02 (-1.48%)
YOUW 3.80 Increased By ▲ 0.03 (0.8%)
BR100 12,027 Decreased By -26.7 (-0.22%)
BR30 36,333 Decreased By -134 (-0.37%)
KSE100 113,785 Decreased By -571.6 (-0.5%)
KSE30 35,088 Decreased By -258.9 (-0.73%)

Cocoa on ICE Futures US fell below two Fibonacci retracement support lines in its last two trading days, and though buyers appeared at Monday's lows, a rupture of next support levels would lead bean prices back to early April levels, or lower. New York cocoa prices took their biggest three-day dive in 15 months, falling more than 7 percent to $2,203, their lowest level since May 3.
Along the way, a 200-day moving average gave way, then ruptured a 50 percent Fibonacci retracement of the move from the December 3, 2012 high down to the March low at $2,034, followed by the 61.8 percent retracement level of the same move. September cocoa futures on ICE dropped $38, or 1.7 percent, to end at $2,215 a tonne, recouping some of those losses. The settlement was still the lowest for cocoa's second position since May 31.
Cocoa's decline to a two-week low at $2,203 stopped just short of a triple bottom formed in late May between $2,198 and $2,200 per tonne. If cocoa continues its descent and tumbles through that area, prices would find little support before the April 8 low at $2,143. Kash Kamal, research analyst at Sucden Financial in London, said in a research note that he pegged next support at $2,190, just beneath the April 9 low.
If prices pick up momentum from the late Monday buying, however, resistance would loom first at the session high of $2,253, then the 50 percent Fibonacci level at $2,295, and Friday's high at $2,310 per tonne. Kamal's analysis points to eventual recovery targets in the $2,370 to $2,380 range, an area of prior highs that held firm in previous attempts to push above them. This area should "keep pressure on any further upward momentum," said Kamal.

Copyright Reuters, 2013

Comments

Comments are closed.