Hello everyone, today I’m sharing my analysis on cocoa futures, as I see an interesting opportunity for an upward move. Below, I’ll break down the reasons behind my bullish bias and my entry strategy. Let’s get into the details!
Why I’m Bullish on Cocoa Futures
Institutional and Retail Activity
My indicator is showing an incredible amount of long contracts from institutional players, while retail traders are selling aggressively, which is a bit alarming. Since retail traders often get it wrong, this strengthens my expectation of an upcoming upward move, and I’m looking for a long entry.
Open Interest
My open interest indicator confirms my bias, as all open positions are longs. This signals strong buying interest from the big market players, aligning with my bullish outlook.
Valuation
My valuation indicator also shows a clear undervaluation of cocoa, suggesting that the current price is an attractive opportunity for buyers.
Technical Analysis
The price recently touched a key zone on the weekly timeframe, and in that touch and reaction, it left a zone that, based on my objective parameters, is actionable, as cocoa is at a significantly discounted price. While this move and reaction might not yet change the downtrend on lower timeframes, I can take advantage of this zone for a tactical entry. Let’s recall the principle of supply and demand: I’m placing my entries where institutions have their buy orders, and this is one of those zones.
Additionally, on higher timeframes, I see very significant demand zones below, which suggests a potential upward move that could indeed shift the trend to bullish. However, for this specific entry, I’m aiming for an entry within the next day. If the price drops further, I’ll be happy to buy at an even more refined zone on the weekly timeframe.
My Entry Strategy
I’ll enter a long position in the identified zone, expecting a quick upward move. I’ll keep this idea updated as the price evolves, so stay tuned for more details.
Disclaimer
This is my personal analysis and does not constitute financial advice. Trading carries risks, so always conduct your own research and assess your risk tolerance before making decisions.
Why I’m Bullish on Cocoa Futures
Institutional and Retail Activity
My indicator is showing an incredible amount of long contracts from institutional players, while retail traders are selling aggressively, which is a bit alarming. Since retail traders often get it wrong, this strengthens my expectation of an upcoming upward move, and I’m looking for a long entry.
Open Interest
My open interest indicator confirms my bias, as all open positions are longs. This signals strong buying interest from the big market players, aligning with my bullish outlook.
Valuation
My valuation indicator also shows a clear undervaluation of cocoa, suggesting that the current price is an attractive opportunity for buyers.
Technical Analysis
The price recently touched a key zone on the weekly timeframe, and in that touch and reaction, it left a zone that, based on my objective parameters, is actionable, as cocoa is at a significantly discounted price. While this move and reaction might not yet change the downtrend on lower timeframes, I can take advantage of this zone for a tactical entry. Let’s recall the principle of supply and demand: I’m placing my entries where institutions have their buy orders, and this is one of those zones.
Additionally, on higher timeframes, I see very significant demand zones below, which suggests a potential upward move that could indeed shift the trend to bullish. However, for this specific entry, I’m aiming for an entry within the next day. If the price drops further, I’ll be happy to buy at an even more refined zone on the weekly timeframe.
My Entry Strategy
I’ll enter a long position in the identified zone, expecting a quick upward move. I’ll keep this idea updated as the price evolves, so stay tuned for more details.
Disclaimer
This is my personal analysis and does not constitute financial advice. Trading carries risks, so always conduct your own research and assess your risk tolerance before making decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.