Cocoa Futures--- Cocoa futures in the May contract are trading higher for the 6th consecutive session up another 50 points at 2493 as I sound like a broken record as the bullish momentum is incredibly strong to the upside as still there is room to run.
I have been recommending a bullish position from the 1990 level & if you took the trade the stop loss has been raised once again up to 2160 level as the chart structure is terrible at the present time due to the fact of the recent run-up in prices, however the stop loss will be raised on a daily basis starting next week therefore lowering the monetary risk. S
trong demand coupled with the possibility of lower production levels prices as hot and dry weather conditions in West Africa continue to prop up cocoa here in the short term so stay long as who knows how high prices can trade.
The next major level of resistance is at 2600/2700 & if that is broken I think we could test the 3000 level rather quickly as the volatility is certainly starting to expand as I think it will become even more violent to the upside in next weeks trade.
Cocoa prices are trading far above their 20 and 100 day moving average as this trend is getting stronger on a daily basis as this is my only soft commodity recommendation at the current time as I see no reason to sell as I still think if weather conditions don't improve in West Africa prices could move sharply higher from today's price levels.
CHART STRUCTURE: POOR
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