Cocoa (update)

Today saw heavy selling with a close below the monthly S2 pivot and near its lows of the day.  The bullish position took major damage, but there is still some support above 1840.  If we break below that level, then this pattern fails.  Will this market try and form a double bottom pattern or seek even lower prices?

  

Facebook (update)

FB made new all time highs again today with a high of 137.18 and found resistance @ the monthly R1 @ 137.14.  I expect this stock to reach my resistance zone this week.  I strongly believe FB is setting up for a nice short trade.

Cocoa (update)

We briefly traded above the 10 DMA today, but it served as overhead resistance once again.   We look poised to test the monthly S2 pivot below @ 1944.  Our recent bounce still looks healthy despite its sideways action over the past week.  I will start getting concerned if we fail to hold above 1944.

Nasdaq (Update)

Today was a pretty quiet day with a small trading range and found resistance @ the monthly R2 pivot (5350.75) for the 4^th time in 5 days.  Tomorrow is the end of February, so monthly pivots change on Wednesday.  Things should get more interesting by weeks’ end with unemployment on Friday.  Until then, we might chop around sideways.

Nasdaq (update)

We made new recent highs today on selling and we had a close below the previous days' low.  This is the first sign of weakness we've seen since January 31st.  Prices continue to find resistance at the lower end of the Fib cluster zone.  This market is definitely overextended and I wouldn't be surprised to find some sideways action over the next week to shake off the bullish energy.  Ideally, I'd like to see some minor retracement before making another test of the highs.  If we could get a double top form up in the Fib cluster zone along with a bearish Japanese candle pattern, then I'd be pretty confident a longer term top is in place.  Let's continue to watch how prices unfold over the next week.  Next downside support seen ~ 5293.93 (10 DMA), 5241.25 (monthly R1), 5233.67 (20 DMA).

Cocoa (update)

We saw prices close back above the 10 DMA and the monthly S1 pivot, which was a positive sign.  It still looks to be forming a measured move pattern to the upside.  We just need a break above 2060 and this gets activated with Fib projection targets.  For now, next upside resistance remains the 20 DMA @ 2037.  Let's see if we can close the week out strong with prices above the 10 DMA, 20 DMA, monthly S1 pivot while forming a measured move pattern.  This would give some validation to the recent bottom.

Facebook

I normally don't look at stocks, but came across an interesting set-up developing in Facebook.  I see a fib cluster of resistance ~ 137.50 to 146.50.  This cluster contains fib projections from 5 different measured moves as seen on a weekly chart.  They date back as far as 2014 and give us a 1st resistance window of 137.46 to 150.73.  More importantly, if we look more locally, we have 3 measured moves made off the November 14 swing low @ 113.55.  These 3 MM's give a fib projection cluster ~ 134.95 to 155.47.  So, we basically have a range of 134.95 to 155.47.  I can narrow down this range to ~ 137.50 to 146.50 for a higher probability set-up with 141-144 being the potential sweet spot.  I will look for additional supporting clues as we trade higher into this range.