Shorting Cocoa on a 1-2-3 Top Formation

Cocoa has formed a typical tight 1-2-3 top and we will be shorting cocoa futures when the price breaks below the #2 point at 2728 it hit on 12/4.  The 50% retracement is at ~2495, leaving us plenty of downside profit potential.

If you look at the Monthly Cocoa chart, cocoa prices haven’t been this high since mid-2011.

Daily Cocoa - March 2014Weekly Cocoa

Monthly Cocoa

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