Market tested 61.8 Fib on the retracement. Now below 55 day. Test of gap and trendline possible.Possible short b/w 2820-2840 upon price action confirmation. Follow through selling below the 4/20 low also a good trigger for a short. As always use proper money management stops to limit risk.
The price of cocoa could double by 2020 on rising demand for chocolate out of Europe. For years, cocoa has been weak because Europe consumers have been beaten down by the slowing European economy. Now, with ECB QE showing signs that it's helping turn the corner for Europeans, and with massive amounts of inflows into European stocks in anticipation of a rebound,...
Cocoa is getting close to a area of strong resistance, a 50% retracement around 3030 which also is previous support, this might also be a area where those who went long around 2700 is looking to take of some profit. Risk/reward is 2:1 on this trade.
Long 1- Support 2- 50 % fibonacci 3- and of abc correction 4- Bottom of channel 5- fast grow in first week on february 6- Eliott teory 7- Big volume Negative- - Non-comercial make new short position - Commerzbank and Rabobank forecast 2000$ and 2800$ for Q1