Hello traders!
Today we will talk about Cocoa and its price action from Elliott Wave’s perspective.
Well, looking at the longer-term weekly chart, we can see Cocoa moving sideways for 10 years in the 3700 – 1700 range, ideally within a bigger bearish triangle pattern in wave »B « before we may see even more weakness into a wave C towards 1000 level. But, it’s not ready yet, because subwave (E) is still missing, so we will probably see a recovery at the end of the year or in 2021 before a bigger sell-off.
As you can see, in the shorter-term daily chart, we are currently tracking a three-wave A-B-C decline within wave (D) that can send the price down to the lower triangle line and 2000 – 1800 area. The only question is, either is subwave B already finished or will we see a retest of 2500 – 2700 resistance area before a decline into wave C to complete a higher degree wave (D).
All that being said, be aware of more weakness for Cocoa this year, but the downside can be limited, so at the end of 2020 or at the beginning of 2021 we may see another, bigger recovery for the final wave (E).
Share
