Tuesday, March 28, 2017

Cocoa (update)

Cocoa broke out of a symmetrical triangle pattern to the downside today.  It's not surprising considering we had 3 small body candles 3 of the 4 previous days.  The market ran out of steam just below my 2197 to 2237 resistance zone shown below.  The downside target on the triangle pattern is ~ 2065.  That would still be above a 50% retracement from the recent low, so the uptrend is still intact.  There's a volume @ price support zone between 1995 and 2025.  I would like this level to hold, otherwise the recent rally could be in jeopardy. 

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