Cocoa (CC) rebounded a massive 4% plus yesterday, bouncing off downchannel support (on the daily chart). Significantly, although CC had broke last week below upchannel support (on the weekly chart), CC appears to be clawing back above this support. Importantly for bulls, CC on the lowest point of November’s slide, did not break to a fresh 2021 low. Before bulls get excited, CC will need a daily close above the psychologically key 2500 whole figure level and the daily chart downchannel resistance. Congratulations to readers who benefited from the Aug 9th alert of CC’s increasing bounce momentum, and from the major trend reversal opportunity highlighted Jul 23, 2020 and again on Nov 13th. Except for the weekly MACD which still slopes down, the weekly, daily and 4hr RSI, Stochastics and MACD are bottomish or rallying. I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Thursday. 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).
Sample of Today’s Top 3 Trades Available to Free Subscribers (published Apr 14, 2021)
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