NIB BUYING OPPORTUNITY - COCOA

Nib is an ETN which invests in Cocoa futures. It has broken through a downward trendline. It appears to be setting up for an inverse head and shoulders.

Trading plan:
Buy around downward blue support line. Stop loss just under the support line.

Targets are at the neckline of the Inverse H&S and also at the previous high where the green arrow shows.

Based on my study of the patterns in cocoa, I believe Cocoa is one of the most bullish commodities at this time. What do you think?

Comment:

Update - The downward trendline was broken through and now has come down to retest the downward trendline as support. This is a possible re-entry for a long position. Price is currently 25.48 per share. There are two options for a stop-loss - one is a daily close below the blue trendline. The other option is a daily close lower than the right shoulder at approx $23.98.
I am inclined to keep the right shoulder low level as the stop loss.
I am targeting a retest of the previous high around $35 per share.
I also think that over the next few months we may form a new upward trendline - provided that our stop-loss is not activated. If that upward trendline then fails, it would be another signal to get out.

Comment:

Approximate Long targets
TG 1 $28
TG 2 $30
TG 3 $35