In today's analysis, I would like to discuss COCOA, a commodity we've highlighted several times on our portal. Recently, COCOA appears to be making a solid return to its bullish trend. Earlier this year, COCOA experienced a strong upward movement, peaking in mid-April. Since then, a corrective phase has taken place, establishing key horizontal support at $7,050. Most notably, a descending triangle has formed on this support, characterized by the horizontal support at $7,050 (marked in yellow) and a descending resistance line (marked in orange). This setup typically signals a potential breakout to the downside. However, contrary to expectations, COCOA broke through the descending resistance yesterday, signaling a bullish reversal. This breakout paves the way for a corrective upswing, with the initial target set on the white downtrend line. It's important to note that the key support remains at the yellow area, around $7,050. As long as the price stays above this support, the sentiment remains positive. In conclusion, the sentiment for COCOA is bullish, with the breakout suggesting a possible upward movement. However, traders should be cautious. A daily close below the yellow support area would negate the bullish outlook and serve as a strong sell signal. #forex#trade#learning#analyze#primeacademy
Be careful. Andurand Capital Management LLP has lately left the "crude oil Casino" and is now in Cocoa and Copper. As usual, Pierre Andurand, leaves his special "odeur" in both markets.