N.Y. Cocoa Mired in Price Downtrend

December cocoa futures on the New York Board of Trade are mired in a three-month-old price downtrend from the July high of $1,767 a ton. Prices Tuesday notched a fresh three-week low of $1,433. The next near-term downside price objective for the bears is to push and close December cocoa below strong technical support at the contract low of $1,415, scored in September.


A close below the present contract low would produce more serious chart damage to suggest a fresh leg down in prices and a challenge of the 2005 low of $1,315, basis nearby futures.
click the chart to enlarge
December Cocoa Futures
For the cocoa bulls to gain some fresh near-term upside technical momentum, they will have to produce a close above solid technical resistance at $1,500 a ton. Above that lies solid technical resistance at the September high of $1,535, basis December NYBOT futures.
Need help on better entry into, and exit from, markets? I have an e-book called “The Art of Effective Stop Order Placement in Trading Markets.” You can buy it for only $14.95 by clicking on the “SUBSCRIBE” section of my website at www.jimwyckoff.com . If you are like many traders who feel your market entry and protective stop placement methods need improvement, then my e-book will be a valuable resource to you. I also have an e-book entitled “62 Rules Used by Profitable Futures Traders,” which sells for $19.95. All of my educational products are designed to be easily understood and are in “plain English.”

No comments yet.

Leave a Reply