The fall back in Cocoa prices from a multi-year peak in early March recently found interesting Fibo support which the market seems reluctant to break through — is a temporary recovery just round the corner?

  • MONTHLY CHART – CONTINUATION The drop back from the 3826 peak recently tested the 38.2% pullback of prior 2004/2011 upmove, at 2860. Also note the rising support line nearby –we keep a lookout for better support to emerge here.
  • DAILY CHART – Sep-11: See how support continues to be influential from the recently-eroded 76.4% pullback. With potential support suggested by the longer term continuation chart too we must be on the lookout for a recovery phase getting underway. This would mean lower levels such as the Sep-10 low and 2660 equality target ( (Mar downmove extended off the late Apr 3351 high) stay out of reach for now. Initial resistance has come from the 23.6% recovery level (of the whole downmove from Mar) with higher 3165 38.2% and 3280 channel top projection looking more key at this stage.

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