Over the last 12 months, Cocoa has been forming a very big bottom formation. Big bottoms can support big moves, particularly if there is little resistance to impede it. I see big things for this market
in the coming months – may be a 30% advance in price.
Following a long bullish divergence in the MACD the price has decisively broken its downtrend line. The break is impressive and adds conviction that it heralds an important move. The fall at the end of 2016 was so sharp,
it left little resistance to impede a fast advance. However, there is solid resistance from 2200 upwards.
I see London Cocoa advancing strongly from here. supported at 1600 and moving quickly toward resistance at 2200 – an advance of around 30%.
Trevor Neil MSTA MCSI