Cocoa is riding on a wave C, the third wave of a three-wave cycle that started at the Sept. 25 high of $3,399. This wave is capable of travelling to $2,806, its 100 percent Fibonacci projection level.
The support at $2,893, the 76.4 percent level, has triggered a moderate rebound, which may be limited to $2,947, the 61.8 percent level.
A rise to $2,954 may signal a break above $2,947, and the rebound may extend to $2,991, the 50 percent level.
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.