Cocoa gyrations always fascinating, yes. And what do you think right now? I feel very bullish about it. Do you perceive a pattern that reveals more potential currently? Thank YOU~!~
ck9888
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Thanks for the feedback. As it turns out, we were both right. There was a bullish rally which took out my Short stop loss, but then swung back down. I didn't make a profit as I am a swing trader, not a scalper & actively watching (plus I'm in Australia, but the market is in the UK I believe). Yesterday was the most volatility I have ever seen otherwise it would have been a great pay off for me.
TradingwDavid
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@ck9888, Yes, yesterday has been a "particular" day; before up of almost 4% and then, cocoa has closed with a -5%. That's why I don't trade the futures, but, with the commodities, I do spread trading. Cocoa is quoted in London and New York markets, the one we trade at the New York Board of Trade (NYBOT). For this reason, in particular with grains, but not only, the "real trading day" begins with the opening of Wall Street.
ck9888
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The background is I have an open position on cocoa, but I shorted thinking we have just come off a 5 wave high. I'm a relative noob and I just learned about pitchforks. After placing one I concur that the trend is actually perhaps upwards.
TradingwDavid
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@ck9888, Hi, my "pattern" is just a different interpretation of a Harmonic Pattern, in this case, a Bearish Bat Pattern. I try to ride the last leg of the pattern. I have also written a free eBook about this strategy.
About cocoa, mine it's only a graphic analysis, it doesn't take into account any other implication (seasonality, fundamentals, etc.) For example, for what it's worth right now, the seasonality is bearish.
Sincerely, I think to be the only (or one of the few) bullish on cocoa, I read several reports (forecasts) like that of Capital Economics (they see the price of cocoa at $ 2,300 in Q3), or the Swiss company where works my great friend, that has as targets $ 2,030/2,006/1,980.
Have a great Sunday!
ck9888
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Hi, mind telling me the charting tool you used to come up with that pattern? Thanks!