SINGAPORE: New York May cocoa faces a strong resistance at $2,999 per tonne and may retrace to a support at $2,922.
The resistance and the support are identified respectively as the 50 percent and the 38.2 percent Fibonacci retracements on the fall from the Sept. 25, 2014 high of $3,323 to the Feb. 2 low of $2,674.
The successive gains from $2,674 have not been disrupted by a decent correction, which may occur around $2,999, the 50 percent retracement. The bearish divergence on the hourly MACD strongly suggests a due correction as well.
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