Currently, the PEPPERSTONE:COCOA (cacao) market has undergone a notable upside rally over recent days, culminating in a significant move towards the $6000 level. Today, we observed a precise hit of this key psychological level, followed by a clean rejection, prompting a short position.
The primary objective now is to remain below this crucial $6000 level, aiming to capitalize on a potential correction in the recent upward surge. By maintaining short positions, we aim to capture the potential downside movement with a relatively small risk, yet the possibility of a substantial gain.
Initially, the trade unfolded favorably, with the price action aligning with our short position. However, subsequent movement saw a retracement back towards the entry level, highlighting the need for vigilance and adaptability in response to evolving market conditions.
As we await further price action, it's imperative to remain attentive to developments in the PEPPERSTONE:COCOA market. Tomorrow's movements will provide valuable insights into the durability of the recent rejection and the potential continuation or reversal of the prevailing trend.
In navigating this trade, maintaining a disciplined approach and closely monitoring key levels and indicators will be crucial. While the potential for a significant win exists, it's essential to manage risk effectively and remain adaptable to changing market dynamics.
Comment
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Historical event on this asset, we can fight the trend / momentum for now. Maybe we will try another very low risk entry later but for now we need to wait ...