September ICE Cocoa Futures a Selling Opportunity on Fresh Price Weakness
See on the daily bar chart for September cocoa that trading has become more volatile at higher price levels, and has formed a bearish broadening pattern, also called a reverse triangle. That’s an early clue of a market top being in place. If prices drop below solid chart support at last week’s low of $3,040 the bears would gain downside technical momentum and it would also become a selling opportunity. The downside price objective would be $2,900 or below. Technical resistance, for which to place a protective buy stop just above, would be located at $3,100.
