The Commodity Specialist view – Following a correction low last September Cocoa prices lacked direction for several months, albeit with an upward bias. Recent breaks of resistance, though, have provided a clear bull signal.
- MONTHLY CONTINUATION CHART:
Correction from the 3510 Dec-09 peak essentially found support around the 38.2% retracement.
Subsequent recovery is now well underway, and the peak is now in sight. - DAILY CHART – MAR-11:
Breaking through falling resistance and the 3140 07-Dec high were bullish signs, and s/term dips are seen as temporary, and should probably not be deep at this stage.
In this regard note the first interesting support area from that 3140 07-Dec high and falling return line at 3100. Buyers on dips may well enter above here now.
At this stage note two Fibo projections at 3655 / 3700, the next target/resistance area.
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