Cocoa (last update)

The bullish Cocoa set-up from my original 2/2 post is now considered void and failed to reach its minimum upside target. CLICK HERE for the original post. I'm now focused on another potential bullish MM Fade pattern, but on a much smaller scale than the last one.

Here's the Pattern Analysis: Cocoa might be setting up for a smaller MM Fade pattern with the focus on the move down from the March 21st high of 2188 on the July contract. This recent downtrend has a dominant MM with deep retracement and 1:3 left-handed skewing. The supporting1 MM has neutral deep retracement with 4:2 right-handed skewing. Together they create my Fade Zone (2023 to 1815). Because both retracements are larger than 50%, I consider this a weak downtrend that should produce a nice upside move if a low is established within it. You can expect a bounce to a minimum of the 50% retracement level from that March 21st high and the potential low.