LEONES

Cocoa coming from the Ivory Coast

Short
ICEUSA:CCZ2013   None
Normally these types of patterns lead to big moves. I call them 'overfalls'. The price moved up to the up sloping median line as a reaction to weather concerns (dry weather) in Ivory Coats but then found resistance (2500 level approx). From the 08Aug to the 30Aug 2013 the price has been in consolidation moving just above the 20EMA and forming a regular 'floor'. Final brake out to the downside happened on the 30Aug13. Price projection is towards the up-sloping lower parallel where another swing up is expected. The final target is around 2200 (trendline). Commercial traders are net short 64000 contracts at the moment which is quite an extreme position. Similar shorts were only seen in early May13 (previous high)

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