December cocoa futures on the New York Board of Trade are mired in a three-month-old price downtrend from the July high of $1,767 a ton. Prices Tuesday notched a fresh three-week low of $1,433. The next near-term downside price objective for the bears is to push and close December cocoa below strong technical support at the contract low of $1,415, scored in September.
A close below the present contract low would produce more serious chart damage to suggest a fresh leg down in prices and a challenge of the 2005 low of $1,315, basis nearby futures.
click the chart to enlarge
For the cocoa bulls to gain some fresh near-term upside technical momentum, they will have to produce a close above solid technical resistance at $1,500 a ton. Above that lies solid technical resistance at the September high of $1,535, basis December NYBOT futures.
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