Coffee reached our target at 120. However, there is still no signal the decline is done and we want to follow the trend. The support is broken and it makes me believe there is a big chance we can see a retest of important support/resistance near 104. So, if you still hold your shorts, consider adding trailing stops and let the good time roll.
-The market is in a critical position. a front of a very important support
-For now there is a big probablity that the market
can return tested (2374)
-But if ever it break the resistance with power
the market will go to (2465)
Cocoa will go up.
**Disclaimer** the content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.
While you’re enjoying the summer sun and clear skies back in SA paradise…
I’m afraid I’m not.
I’m trying to keep warm sitting inside a local restaurant in Greece with a cup of hot chocolate while I search for my next trade.
And surprise, surprise, cocoa popped up on my radar…
Here are three reasons why I’m buying cocoa and where I expect it to head next.
Cocoa has been trading on a multi-year Channel Up since May 2017 with the 1D chart trading near the overbought territory (RSI = 70.555, MACD = 51.220, Highs/Lows = 144.4643).
If the Channel stays intact then the price should pull back towards the 1D MA200 for a Higher Low near 2,365. If however it breaks as it did in March 2018 then it can easily reach 2,940...
Cocoa is a buy at the moment but there are also short opportunities to be had once we reach the top.
Please note that this chart is an opinion based chart only. Please trade at your own risk
Cocoa is currently trading on a 1D Channel Down (MACD = -26.310, Highs/Lows = -32.7143, B/BP = -53.5400) about to price its Lower Low. We have a pending short order on the 3rd estimated Lower High, which based on the previous channel's should be printed. TP = 2100.
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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.
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.