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Cocoa (CC) Bouncing Off Weekly Chart Upchannel Support

Cocoa (CC) Bouncing Off Weekly Chart Upchannel Support

Posted November 19, 2021
Darren Chu
Tradable Patterns

Cocoa (CC) Bouncing Off Weekly Chart Upchannel Support

Cocoa (CC) rallied another near 1% yesterday, forming a 4th straight green daily candle and is suddenly back to near the November high.  Significantly, although CC may consolidate today yesterday’s recapture of the 38.2% Fib retrace of the September to November slide, CC is arguably extending a major upchannel (on the weekly chart).  Odds are fairly high for CC to further its near 2 week rally to the 50% Fib by next week sometime.  Congratulations to readers who benefited from the Aug 9th alert of CC’s increasing bounce momentum, and from the major trend reversal opportunity highlighted Jul 23, 2020 and again on Nov 13th.  The weekly and daily RSI, Stochastics and MACD are bottomish or rallying.  I am long as of yesterday at 2590 although if I were flat, I’d look to enter long in the green zone (of the daily chart), targeting the red zone for Thursday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).

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