US MIDDAY: cocoa dips on technical signals

14 Sep, 2005

The benchmark cocoa futures price on the New York Board of Trade fell 2.56 percent Tuesday, with speculative selling and weak technical signals pressuring prices for the third straight session, market sources said.
"We have an island top, reversal pattern on the charts. We could have gone to $1430-$1420 where there's a gap, but we held above that. We did end near the lows and extended the previous day's losses, so technically, it still looks weak," said one analyst.The New York Board of Trade's benchmark cocoa contract for December delivery dropped $38 to $1,445 a tonne, just off the bottom of its $1,440-$1,482 trading range. March finished down $37 at $1,479 and the rest of the board closed $36 to $38 weaker.

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