Cocoa Hits Multiyear High

Cocoa futures hit a new multiyear high today. The July contract month hit 3138. Over the next few days we will wait to see if a 123 Top Formation gels and then we’ll short the Cocoa market. The 50% Retracement Level on the Sept. Daily Cocoa chart (see below) is 2990, and on the Weekly Cocoa chart (see below) is 2592. There is huge downside profit potential in this trade, especially since the last 2 times we shorted Cocoa prices kept rising. Third time’s the charm!

 

Daily Cocoa chart - Sept 2014Weekly Cocoa chart

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