The support is provided by the 23.6 percent Fibonacci projection level of an upward wave c that developed from the Oct. 14 low of $3,022. This wave could have completed at the Oct. 23 high of $3,175, near a resistance at $3,176, the 86.4 percent projection level.
A bigger downward wave C has started and will totally reverse the wave c. The five-wave mode of the preceding wave A from the Sept. 25 high of $3,399 to the Oct. 8 low of $3,030 indicates a slim chance of cocoa to approach $3,176 again.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.