This is very much in the same boat as Coffee - out of season, increasingly negative fundamentals, etc.. (Now, even cocoa brokers are entertaining each other tall tales, trying to pass the time and in an attempt to reinvigorate the business. Yeah, how could that not work?! ... ;-)
A resumption of a U NYSE:D rally, at any point, will put a further lid on this one...
Cocoa formed a W Formation (Simple).
Price broke up and out of the sideways range and now looks like it's going to $26.90
RSI also broke out of its down divergence showing bullish momentum.
Looks good.
Cocoa daily chart forming a bullish hammer pattern, after hit the support at the bottom of the consolidation zone. If the daily hammer pattern confirmed I recommend to open long trade at market price, because i think it can go to February 2020 high price at 2900.
Trade at your own risk.
Please don't forget to like, follow, and comment, if you like my analysis.
Cocoa Futures showing some signs of rejection at relevant area of Resistance. Also note that climatic volume which makes me think that there may be selling pressure. 3D chart.
Cocoa Long - Risk Reward 2:20
Cocoa is trading below the long term weekly trend, with strong selling pressure forcing it below the expected RSI and BBands for its current bull cycle.
Trade with tight stop on bottom of cyclical trend reversal.
Entry price range: 1.9 - 2.0
Exit price range: 2.26 - 2.35
Cocoa is a buy at the moment but there are also short opportunities to be had once we reach the top.
DISCLAIMER
Please note that this chart is an opinion based chart only. Please trade at your own risk
Quick chart for my followers, cocoa to go long, if you have been following my other publishes then you would understand my chart without yellow full details, there may be further downtrend on the bottom yellow line but overall cocoa is on the uptrend as it has hit top yellow line.
Top yellow line at 2051
Bottom yellow line at 1800
Please study your indicators...
Cocoa is at a heavy resistance now, 2443. Will it go Short or long?
Price is exactly between two fibonacci resistances now; 2524 and 2368. I think price will bounce between these two before it breaks long or short.
When it breaks the long resistance 2524, I see a target of 2674. When it breaks low; target 2153.
Most difficult part are the exact positions where...
Cocoa is at a heavy resistance now, 2443. Will it go Short or long?
Price is exactly between two fibonacci resistances now; 2524 and 2368. I think price will bounce between these two before it breaks long or short.
When it breaks the long resistance 2524, I see a target of 2674. When it breaks low; target 2153.
Most difficult part are the exact positions where...
This is only a trading capability - no recommendation !!!
Buying/Selling or even only watching is always your own responsibility ...
.zip (with PDF`s) @ my Google Drive
In percents away from all-time high & low by last close (32 Commodities)
drive.google.com
Best regards :)
Aaron
