December ICE cocoa futures a buying opportunity on more price strength.
See on the daily bar chart for December cocoa futures that prices are in a solid 3.5-month-old uptrend and have just hit a contract high. Prices have recently seen a bullish upside “breakout” from the recent congestion area. The cocoa bulls have strong upside near-term technical momentum and there are no early technical clues of a market top being close at hand. A move above chart resistance at Wednesday’s high of $2,733 would become a buying opportunity. The upside price objective would be $2,900, or above. Technical support, for which to place a protective sell stop just below, is located at $2,657.
