Cocoa (CC) Month Long Bull Flag Consolidation Near Complete
Cocoa (CC) surged more than 2% yesterday, closing above downchannel resistance (on the 4hr chart). Significantly, CC is on the brink of resolving the triangle (on the daily chart) to the upside, and is in the advanced stages of a Bull Flag consolidation (on the weekly chart) from near the psychologically key 2600 whole figure level and prior downchannel resistance (on the weekly chart). The bigger picture is that CC has been in a wide sideways range between 1700 and 2900 since 2017, and near the 50% Fib retrace of the slide from the 2011 high to the 2017 low. 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, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains. I am looking 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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