New York cocoa to test support at $2,664

SINGAPORE: A bearish target at $2,664 per tonne remains unchanged for New York March cocoa as indicated by its wave pattern and a Fibonacci projection analysis.

Cocoa is riding on a wave C, the third wave of a three-wave cycle that developed from the Sept. 25, 2014 high of $3,349. This wave has a fierce character and may eventually travel to $2,447, its 100 percent Fibonacci projection level.

A realistic target could be $2,581, the 76.4 percent level, which will be confirmed when cocoa breaks the support at $2,664, the 61.8 percent level. Rebound from the current level may be limited to $2,732, the 50 percent level.