Monday, February 13, 2017

Cocoa (update)

Cocoa has been getting hammered since February began and is showing no signs of slowing down.  It's getting close to the bottom of my support zone (1848-2011) and it will be interesting to see if it holds.  I have support showing as far down as 1775, but if that level is breached then this market will have just blown through all possible support.  However, the most recent leg down is showing signs of capitulation and I would love to see a bullish candlestick form soon.  Maybe a hammer or engulfing pattern.  The next most interesting levels to watch is 1850-1875.

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