Cocoa pulled back for a test of 6.90 which is also a 50% Fibonacci retracement of the 2017-2024 uptrend. This level proved to be a strong long0term uptrend support for a retest of a third Elliott Wave peak 11.760 and extension higher in the fifth wave if we get a breakout higher above the recent peak. Learn to Trade Futures profitably.
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The weekly Cocoa chart reveals a bounce from the triangle support 7.260 and is going for an important upside resistance test of a 9.60 level. At this point, buy positions have more probability of success as Cocoa is still within a recent uptrend. Overall support for the upside even if it breaks below 6.920 is 5.600 and tat is also a final long-term support for a bullish trend invalidation.
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As the famous trader says…
“You never know what kind of setup the market will present to you, your objective should be to find an opportunity where risk-reward ratio is best.”
Jaymin Shah
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 9600 and If we get a confirmed break above this level we could see a strong upside continuation for a retest of 11.760 and further in a fifth long-term upside Elliott Wave. Near-term, long-trade entries have a higher probability of success. Long trade entries can be placed here with a stop loss below 7.700. The short-trade entry can be tried in the case of a break below 6.400. For inquiries about account management please write to [email protected].
