The Commodity Specialist view – The recent bull move in Cocoa (ICE) achieved a new multi-year high, but so far the higher levels have not been sustained. The subsequent pullback has now neared technical support which could at least prompt a s/term recovery.
- WEEKLY CONTINUATION CHART:
Price has pulled smartly back after the recent push through the late 2009 high. This leaves higher resistance from the bull channel top projection out of reach for now.
On this chart temporary support has come from the last Dec’s 3100 high. - DAILY CHART – MAY-11:
After a brief move through our Fibo projections the trend reversal quickly violated initial supports, but now note dual support offered by a 76.4% 3062 pullback level and falling return line just above.
The RSI momentum indicator has moved into notably oversold territory, making at least a s/term recovery likely soon.
Initial potential resistance is offered by the prior May-10 high area around 3300 and then the 3400 area.
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