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Strong

Chart to Watch - Cocoa

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of Cocoa. (NYBOT_CC.U13.E).

I hope you are having a GREAT week !!!

This week let's take a look at the Cocoa futures chart.

With futures we use the weekly to tell the trend and the daily for timing the trade.

Right now Cocoa is on a monthly, weekly, and daily MarketClub green Trade Triangle. Having the monthly on a MarketClub green Trade Triangle is not necessary to take the trade, and it is bullish having the monthly Trade Triangle pointing up.

Since Cocoa has made quite a strong move higher so far it is probably due for a minor pull back which could put in a daily MarketClub sell signal.

If Cocoa were to put in a red daily Trade Triangle and the weekly stays on a green weekly Trade Triangle that is the place to start looking to go long. Then if Cocoa traded higher and put in a new green daily Trade Triangle, that would be the place to go long Cocoa using the MarketClub Trade Triangles.

So Cocoa is a Chart to Watch as higher prices might be on the way.

Thanks,
Jim Robinson
Profit Trading.com

Comments

  1. Anonymole says:

    The only hole I see in this prediction is the relative high position of the current COT (comm shorts minus comm longs). This ratio indicator is fairly high meaning that more commercial participants in cocoa are net short, that is, the commercial consumers are reticent to take the price of cocoa any higher. Or in other words, it's a sellers market in cocoa.

    But if the forthcoming decline in the USD$ actually shows up - then we could indeed see cocoa boost to nearly 2500.

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