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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1. main scenario is retrace to $2200 then go upward to $2600.
2. if it holds $2350(current TL), it is possible to see straight up to $2600
My feeling is the former as stochastics/PMO/MACD are all going downward so healthy pullback is due.
Cocoa futures monthly demand in control, long opportunities. Going short with monthly demand level in control is very risky and low odds. Very strong monthly demand created with proximal line at 1995. New daily demand zones being created, not yet available. Longer term long bias with this monthly demand zone in control.
Cocoa (CC1!) is on a very aggressive long term Channel Down on 1W (RSI = 37.498, MACD = -53.170, Highs/Lows = -176.9286, B/BP = -379.8580) and is currently also trending lower on the latest 1D bearish leg, equally as aggressive (STOCH = 21.862, Williams = -90.823). This is the third leg downwards on this Channel Down and based on the previous two it should reach a...
Lester Davids, our Trading Desk analyst, is bullish on sugar over the medium term, but in the short term there may have a potential short/sell.
Interesting that all the softs (except wheat) have all moved together. Possibly look to accumulate a basket of softs on a bit of a pull back.