Friday, 15 April 2011

Cocoa

I was asked for a cocoa chart and I have to say I dont have a clear view.Last year I thought we had a nice top pattern but the market broke out.Obviously political unrest in Ivory Coast has added to volatility.It looks like we are in a large bearish rising wedge pattern and that the next short-term leg should be up.Also the recent sharp decline came on a 120 week/1800 point  cycle so watch the divisions of the Gann square below for support/resistance



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