Seems cocoa is finding a way lower. On the monthly I see too much pressure building. Path of least resistance is likely to the downside at this point. I prefer to get in a bit early than wait for the pennant to break to the downside (if it does).
COCOA is in a corrective phase on weekly chart. I'm expecting one more wave down to previous lows or near the rising trendline before a strong wave up. Good possibilities to make higher highs. A strong breakout on rising trendline invalidates this setup.
Looking for a dip on the daily to get long.
- The last 2.5 years have set up a bullish trend line that we bounced off at the start of this year
- A drop down near to 2800 levels would off fantastic risk reward opportunity