Following the previous analysis on PEPPERSTONE:COCOA , this is the second try to short this parabolic move for a little risk and big potential reward. Late to send the analysis but here was the setup I took and I will hold as much as I can. I never try more than 2 times to short this kind of parabolic move and with proper risk management. Great Trade !
Currently, the PEPPERSTONE:COCOA (cacao) market has undergone a notable upside rally over recent days, culminating in a significant move towards the $6000 level. Today, we observed a precise hit of this key psychological level, followed by a clean rejection, prompting a short position. The primary objective now is to remain below this crucial $6000 level,...
Cocoa prices are experiencing unprecedented levels amid supply shortages and weather challenges. Investors should monitor market developments closely, with a bullish outlook towards higher price targets. However, the potential for prices to reverse exists if weather conditions improve, highlighting the importance of staying informed and adaptable in this dynamic...
Cocoa was the best performing commodity in 2023, recording a price increase of 64%1. Cocoa prices have continued to rally in 2024 crossing the threshold of US$5000 Metric Ton (MT) on 2 February 2024. The last time cocoa prices rose to this magnitude was in 1977 when it reached US$5379MT. A similar situation prevailed back then, adverse weather conditions led to...
London Mar 24 Cocoa violated its parabolic advance (linear scale) in recent weeks and was unable to trend higher. Today's decline appears to be a possible failure top roll-over similar to the chart in NY Sugar that led to a precipitous decline in Sugar during December. Could the same type of decline occur in Cocoa? Who knows. Factor Prop Account shorted London...
Long or short bakeout. What do you suppose. Fundamentals are mixed. Ivory coast stopped selling cocoa at the same time new crop is developing well. For me it is time funds to take profit and bring the price down for a correction.
Cocoa has now risen more than 26% since the low of the magenta wave (4) and still seems to be dominated by the bulls. We now expect one last surge before the price reaches the high of the magenta wave (5), which shouldn't be too far away, completing the white wave (B). After that, the trend should be down again, starting with the magenta wave (1).
My analysis favors cocoa shorts in the coming weeks/months for the following reasons: The price of cocoa futures have broken ATH in a parabolic fashion Price is approaching the 5 years R2 Seasonality is bearish in december and after february Lower rates should favor stocks vs commodities All agricultural commodities have retraced quite a lot after...
The billionaire global cocoa market has been steadily rising since the end of last year. As evidence, we can see that in the last 426 days, cocoa has experienced an increase of 80.14% . This surge can be attributed to various factors, such as an increase in the consumption of sweets that use cocoa as a raw material, especially in China. This is evidenced by The...
Prediction : I expect COCOA FUTURES price to start a bearish trend after hitting the resistance presented in the pitchfork on the chart. Reasons : - investors may take their profits of the year - currency depreciation of the producers countries vs the Dollar - as interest rates stabilises , investors starting to move to stocks as the fear times of the...
Cocoa going lower cocoa has double topped and is starting to sell off. Cure for higher prices is higher prices and we have seen the higher prices.
Hey Traders, This video is a little different to normal but still very relevant. Another example of shorting in market sentiment to the upside. Watch for more.
Cocoa is far overbought and is due to fall in the coming months. 12% TP and SL.
After a minor consolidation phase in which the price of cocoa stagnated just below the pink trend line, the next step of the magenta wave (5) was completed: a clear breakout above this line. We now expect a larger upward expansion until the magenta five-wave move and thus the superior white wave (B) is completed. After this top, the price should go down again -...
There has been an active selloff of the 4000 strike for several days. In other words, the former owner of the option contracts sells off his portfolio. A noteworthy and important point is the fact that this happens in a rising market. In the vast majority of cases, this is a bearish sentiment and reflects a major contract holder's fear of a slowdown or, more...
Weather has always been a key factor influencing the outlook for major commodities, especially agricultural commodities. The arrival of El Niño in June 2023 has led to a wide divergence in the performance across agricultural commodities. As discussed in our previous blog “What does El Niño’s return mean for commodities?”, the effects of El Niño include specific...
The market is favorable to the sellers from August 7 and allowed them to make a small profit. The balance of power is clearly in favor of the bears. A breakdown of the local support level at $3405 will confirm our existing evaluation. We are waiting option market confirmation.
As commodities start to going down, and cocoa just made a double top, plus had a huge erection what needs a correction, I will go short.