Cocoa (CC) Bounces Off Weekly Chart Downtrend Support

Articles From: Tradable Patterns
Website: Tradable Patterns

Cocoa (CC) gained for a 4th straight day yesterday, closing back above the psychologically key 2300 whole figure level.  Any daily close above the daily chart downchannel resistance will dramatically increase the likelihood of breaking downtrend resistance (on the weekly chart) in the few days after.  Although unlikely to retest this week’s fresh 2022 low in October, some healthy profittaking will likely kick in by early next week.  Congratulations to readers who benefited from the Aug 9, 2021 alert of CC’s increasing bounce momentum, and from the major trend reversal opportunity highlighted Jul 23, 2020 and again on Nov 13, 2020.  The weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.  I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Monday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on RAW SUGAR, GBPAUD

Source: Interactive Brokers TWS

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