"COCOA" Commodities CFD Market Bearish Heist (Swing/Day Trade)🌟Hi! Hola! Ola! Bonjour! Hallo! Marhaba!🌟
Dear Money Makers & Robbers, 🤑💰✈️
Based on 🔥Thief Trading style technical and fundamental analysis🔥, here is our master plan to heist the "🏉COCOA🏉" Commodities CFD Market. Please adhere to the strategy I've outlined in the chart, which emphasizes short entry. Our aim is the high-risk Pink MA Zone. Risky level, oversold market, consolidation, trend reversal, trap at the level where traders and bullish robbers are stronger. 🏆💸"Take profit and treat yourself, traders. You deserve it!💪🏆🎉
Entry 📈 : "The vault is wide open! Swipe the Bearish loot at any price - the heist is on!
however I advise to Place sell limit orders within a 15 or 30 minute timeframe most recent or swing, low or high level for Pullback entries.
Stop Loss 🛑:
📌Thief SL placed at the nearest/swing High or Low level Using the 4H timeframe (8800) Day/Swing trade basis.
📌SL is based on your risk of the trade, lot size and how many multiple orders you have to take.
Target 🎯: 6800 (or) Escape Before the Target
🏉"COCOA"🏉 Commodities CFD Market Heist Plan (Swing/Day Trade) is currently experiencing to move bearishness.., driven by several key factors.👇👇👇
📰🗞️Get & Read the Fundamental, Macro, COT Report, Seasonal Factors, Sentimental Outlook, Intermarket Analysis, Future trend targets.. go ahead to check 👉👉👉🔗🔗
⚠️Trading Alert : News Releases and Position Management 📰 🗞️ 🚫🚏
As a reminder, news releases can have a significant impact on market prices and volatility. To minimize potential losses and protect your running positions,
we recommend the following:
Avoid taking new trades during news releases
Use trailing stop-loss orders to protect your running positions and lock in profits
💖Supporting our robbery plan 💥Hit the Boost Button💥 will enable us to effortlessly make and steal money 💰💵. Boost the strength of our robbery team. Every day in this market make money with ease by using the Thief Trading Style.🏆💪🤝❤️🎉🚀
I'll see you soon with another heist plan, so stay tuned 🤑🐱👤🤗🤩
USCOCOA trade ideas
"COCOA" Commodities CFD Market Bearish Heist (Swing/Day Trade)🌟Hi! Hola! Ola! Bonjour! Hallo! Marhaba!🌟
Dear Money Makers & Robbers, 🤑💰✈️
Based on 🔥Thief Trading style technical and fundamental analysis🔥, here is our master plan to heist the 🏉COCOA🏉Commodities CFD Market. Please adhere to the strategy I've outlined in the chart, which emphasizes short entry. Our aim is the high-risk Yellow MA Zone. Risky level, oversold market, consolidation, trend reversal, trap at the level where traders and bullish robbers are stronger. 🏆💸"Take profit and treat yourself, traders. You deserve it!💪🏆🎉
Entry 📈 : "The vault is wide open! Swipe the Bearish loot at any price - the heist is on!
however I advise to Place sell limit orders within a 15 or 30 minute timeframe most nearest or swing, low or high level for Pullback Entries.
Stop Loss 🛑:
📌Thief SL placed at the nearest/swing High or Low level Using the 8H timeframe (8600) Day/Swing trade basis.
📌SL is based on your risk of the trade, lot size and how many multiple orders you have to take.
Target 🎯: 7000 (or) Escape Before the Target
🏉"COCOA"🏉 Commodities CFD Market Heist Plan (Swing/Day Trade) is currently experiencing a Neutral trend (there is a chance to move bearishness),., driven by several key factors.👇👇👇
📰🗞️Get & Read the Fundamental, Macro, COT Report, Seasonal Factors, Sentimental Outlook, Intermarket Analysis, Future trend targets.. go ahead to check 👉👉👉🔗🔗
⚠️Trading Alert : News Releases and Position Management 📰 🗞️ 🚫🚏
As a reminder, news releases can have a significant impact on market prices and volatility. To minimize potential losses and protect your running positions,
we recommend the following:
Avoid taking new trades during news releases
Use trailing stop-loss orders to protect your running positions and lock in profits
💖Supporting our robbery plan 💥Hit the Boost Button💥 will enable us to effortlessly make and steal money 💰💵. Boost the strength of our robbery team. Every day in this market make money with ease by using the Thief Trading Style.🏆💪🤝❤️🎉🚀
I'll see you soon with another heist plan, so stay tuned 🤑🐱👤🤗🤩
COCOA Nearing Major Support - Rebound Towards 9,000$?PEPPERSTONE:COCOA is approaching a significant support zone. This area has consistently acted as a key level where buyers have stepped in, leading to notable reversals in the past. The current move suggests the potential for a bullish reaction if price action confirms rejection through signals such as bullish engulfing candles, long lower wicks, or increased buying volume.
If the support holds, I anticipate a move upward toward the 9,000 level, aligning with the expectation of a short-term reversal. However, if the price breaches this zone and sustains below it, the bullish outlook may be invalidated, potentially opening the door for further downside.
Monitoring candlestick patterns and volume at this critical zone is essential for identifying buying opportunities. Proper risk management is advised to navigate potential volatility.
Just my take on support and resistance zones—not financial advice. Always confirm your setups and trade with solid risk management.
Best of luck!
Markets Technical Analysis 6th April 2025Summary:
- Expects Equities (NK225, HSI, SPX, NDX) to bounce on Monday trading session (7th April 2025).
- Big US tech stocks (AAPL, MSFT, NVDA, AMZN, TSLA, META, GOOG, NFLX) are at support levels.
- Expects commodities (Oil, Copper, Gold, Silver, Cocoa) to be down in the longer term.
I will post this idea as neutral even though it is long for equities in the very short term and short for commodities in the longer term.
COCOA; Heikin Ashi Trade ideaPEPPERSTONE:COCOA
In this video, I’ll be sharing my analysis of COCOA, using my unique Heikin Ashi strategy. I’ll walk you through the reasoning behind my trade setup and highlight key areas where I’m anticipating potential opportunities. My goal is to help you enhance your trading skills and insights.
I’m always happy to receive any feedback.
Like, share and comment!
"COCOA" Commodities CFD Market Bearish Heist Plan🌟Hi! Hola! Ola! Bonjour! Hallo! Marhaba!🌟
Dear Money Makers & Thieves, 🤑 💰🐱👤🚀
Based on 🔥Thief Trading style technical and fundamental analysis🔥, here is our master plan to heist the 🏉COCOA🏉Commodities CFD Market. Please adhere to the strategy I've outlined in the chart, which emphasizes short entry. Our aim is the high-risk Green Zone. Risky level, oversold market, consolidation, trend reversal, trap at the level where traders and bullish thieves are getting stronger. 🏆💸Book Profits Be wealthy and safe trade.💪🏆🎉
Entry 📈 : "The vault is wide open! Swipe the Bearish loot at any price - the heist is on! profits await!" however I advise placing Sell limit orders within a 15 or 30 minute timeframe. Entry from the most recent or swing low or high level should be in retest.
Stop Loss 🛑: Thief SL placed at (9700) swing Trade Basis Using the 2H period, the recent / swing high or low level.
SL is based on your risk of the trade, lot size and how many multiple orders you have to take.
Target 🎯:
Primary Target - 7000 (or) Escape Before the Target
Secondary Target - 5000 (or) Escape Before the Target
🧲Scalpers, take note 👀 : only scalp on the Short side. If you have a lot of money, you can go straight away; if not, you can join swing traders and carry out the robbery plan. Use trailing SL to safeguard your money 💰.
📰🗞️Fundamental, Macro, COT Report, Global Market Analysis, Sentimental Outlook, Intermarket Analysis, Quantitative Analysis, Positioning:
🏉COCOA🏉 Commodities CFD Market is currently experiencing a Bearish trend., driven by several key factors.
⭐☀🌟Fundamental Analysis (All Factors)
Fundamental analysis examines supply, demand, and external influences on cocoa prices.
🌟Supply Factors:
Weather Conditions: Cocoa production, primarily in West Africa (Côte d'Ivoire and Ghana, ~60% of global supply), is weather-dependent. La Niña conditions in 2025 could bring mixed weather—drier conditions in some regions might reduce yields, while improved rainfall elsewhere (e.g., Nigeria) could boost output. Nigeria’s January 2025 exports rose 27% year-over-year to 46,970 MT, signaling potential supply growth.
Crop Health: Diseases like black pod and swollen shoot virus remain threats. Poor harvests in 2024 likely contributed to earlier price spikes, but stabilization efforts (e.g., better farming practices) could ease supply constraints by March 2025.
Production Outlook: The International Cocoa Organization (ICCO) may project a surplus if West African output rebounds, pressuring prices downward from recent highs.
🌟Demand Factors:
Consumer Demand: High cocoa prices in 2024 (e.g., peaking above $11,000) led to demand destruction, with companies like Hershey and Mondelez reporting reduced chocolate consumption in North America. At $8,500, demand might stabilize, though inflation and cost-of-living pressures could still limit growth.
Industrial Use: Cocoa’s role in confectionery remains strong, but manufacturers may continue reformulating products (e.g., smaller sizes) to offset costs, as seen with Mondelez’s Milka bars shrinking from 100g to 90g.
External Influences:
Currency Strength: A stronger U.S. dollar (e.g., rallied to a 2-week high in early March 2025 per Barchart) typically depresses commodity prices like cocoa, as it’s traded in USD. This could keep prices around $8,500 rather than pushing higher.
Geopolitical Stability: No major disruptions in West Africa are noted, but political instability or trade policies (e.g., tariffs) could alter supply chains.
3. Macro Economics (All Factors)
Macroeconomic conditions influence cocoa’s price trajectory.
Global Growth: Slowing economic growth in 2025, particularly in North America and Europe, could reduce discretionary spending on luxury goods like chocolate, capping demand upside.
Inflation: Persistent inflation erodes purchasing power, as noted by the ICCO in 2022. If inflation moderates by March 2025, demand might recover slightly, supporting prices.
Interest Rates: The Federal Reserve’s December 2024 rate cut (25 basis points) with trimmed 2025 expectations suggests tighter monetary policy ahead, strengthening the USD and potentially weighing on cocoa prices.
Energy Costs: High energy prices increase transportation and processing costs for cocoa, supporting higher prices, though a recent dip in crude oil (e.g., down $0.40/barrel on March 5 per Barchart) might ease this pressure.
Trade Policies: Tariff threats mentioned in web results could disrupt commodity flows, though no specific cocoa-related tariffs are confirmed for March 2025.
⭐☀🌟COT Data (Commitment of Traders, All Factors)
COT data from the CFTC provides insights into market positioning as of the latest Tuesday (March 4, 2025, released March 7).
Commercial Positions: Commercials (producers, processors) were reportedly at an extreme long position relative to the past 26 weeks. At $8,500, they might be locking in prices, anticipating a surplus or lower future prices.
Speculative Positions: Non-commercial traders (hedge funds) likely trimmed bullish bets after prices fell from highs. A net short position could emerge if prices hover near $8,500, signaling bearish sentiment.
Open Interest: At a 3+ year low, this suggests reduced market participation, often a bottoming signal, but also reflects uncertainty.
Interpretation: Balanced commercial longs and speculative shorts at $8,500 indicate a market in transition, with potential for a directional move based on new data.
⭐☀🌟Commodity-Specific Analysis
Seasonality: Cocoa typically rallies into April driven by pre-harvest demand and holiday chocolate sales (Easter). At $8,500 in March, an upward seasonal trend could begin.
Supply Chain: Nigeria’s export surge and potential ICCO surplus forecasts (Barchart) suggest improving supply, countering earlier deficits from 2024’s poor harvests.
Substitution Risk: High prices earlier prompted some substitution (e.g., palm oil in chocolate), but at $8,500, cocoa remains competitive, stabilizing its market share.
⭐☀🌟Intermarket Analysis
Dollar Index (DXY): A stronger USD (up $0.139 on March 5 per Barchart) pressures cocoa prices downward, as seen in recent commodity sell-offs.
Crude Oil: Oil’s decline (down $0.40/barrel) reduces input costs, potentially easing cocoa price pressure, though this effect is lagged.
Sugar/Coffee: Sugar prices fell 1.57% and coffee 0.19% on March 5, reflecting broader soft commodity weakness that could drag cocoa lower in sympathy.
Equities: A risk-off sentiment in equities (web results note a sell-off) often correlates with commodity declines, though cocoa’s fundamentals might decouple it from this trend.
⭐☀🌟Market Sentiment Analysis
Trader Sentiment: Online discussions show mixed views—some see $8,500 as a bottom with upside to $18,650, others predict a drop to $9,853 or lower. Bearish sentiment dominates short-term outlooks.
Consumer Sentiment: High chocolate prices and discounting (e.g., 90% off Santas in Germany) reflect weak demand, pressuring cocoa sentiment.
Analyst Views: Hershey’s hedges rolling off in 2025 and ICCO surplus forecasts suggest a bearish tilt, though seasonal bulls remain vocal.
⭐☀🌟Additional Tools and Resources
Technical Indicators: RSI showed negative divergence earlier, hinting at overbought conditions before the drop to $8,500. A neutral RSI now suggests consolidation.
Charts: Logarithmic charts indicate $8,650 as a channel bottom, with $8,500 testing support. Resistance lies at $10,877–$11,400.
Forecast Models: WalletInvestor predicts $18,548 by 2030, implying long-term bullishness, though short-term volatility persists.
⭐☀🌟Next Trend Move
Short-Term (March–April 2025): Seasonal strength and low open interest suggest a potential rally to $9,500–$10,000, but surplus fears and USD strength could cap gains or trigger a drop to $7,647 (WalletInvestor downside).
Medium-Term (Q2 2025): If supply improves and demand remains soft, prices might trend toward $7,000–$8,000.
⭐☀🌟Real-Time Market Feed (Up to March 5, 2025, 08:48 PM PST)
Latest Price (Hypothetical): $8,520 (assumed close on March 5, based on stability near $8,500).
Intraday Movement: Down $187 (-2.02%) on May ICE NY cocoa (CCK25) per Barchart, reflecting USD strength and supply optimism.
Volume/Open Interest: Declining, per COT trends, indicating low conviction.
External Factors: Crude oil down $0.40/barrel, USD up $0.139, sugar/coffee weaker.
⭐☀🌟Future Prediction (Bullish or Bearish)
Bullish Case: Seasonal rally, low open interest, and commercial longs could push prices to $10,000+ by April, especially if weather disrupts supply.
Bearish Case: ICCO surplus, USD strength, and weak demand favor a decline to $7,500–$8,000 by mid-2025.
Outlook: Mildly Bearish in the short term due to supply improvements and macroeconomic headwinds, with a potential bullish reversal if seasonal factors dominate.
⭐☀🌟Overall Summary Outlook
At $8,500 on March 6, 2025, cocoa is at a pivotal point. Fundamentals show improving supply and softening demand, macroeconomic factors (USD strength, inflation) lean bearish, and COT data reflects uncertainty. Intermarket weakness and mixed sentiment reinforce a consolidation phase, with a slight downward bias unless seasonal bullishness kicks in. The next trend likely hinges on weather updates and demand signals, with $7,500–$10,000 as the near-term range.
📌Keep in mind that these factors can change rapidly, and it's essential to stay up-to-date with market developments and adjust your analysis accordingly.
⚠️Trading Alert : News Releases and Position Management 📰 🗞️ 🚫🚏
As a reminder, news releases can have a significant impact on market prices and volatility. To minimize potential losses and protect your running positions,
we recommend the following:
Avoid taking new trades during news releases
Use trailing stop-loss orders to protect your running positions and lock in profits
💖Supporting our robbery plan 💥Hit the Boost Button💥 will enable us to effortlessly make and steal money 💰💵. Boost the strength of our robbery team. Every day in this market make money with ease by using the Thief Trading Style.🏆💪🤝❤️🎉🚀
I'll see you soon with another heist plan, so stay tuned 🤑🐱👤🤗🤩
Cocoa Kakao bottomed and bounced. Target 2x 114% $18,650Using the logarithmic chart, price reached the bottom of a long-term channel at $8,650 on 24 February 2025, and has subsequently bounced higher. The yellow channel is rising even steeper within the rising blue channel, and coincidentally both yellow and blue channels converge above $18,650 on 23 June 2025. This is a convservative estimate. The fundamentals back this this bullish thesis supply constraints persist and demand constraints will be short-lived.
'Cocoa production for the 2024/25 season is expected to reach well below 2022/23 due to continued adverse weather and poor crop conditions.
Latest data showed Ivory Coast farmers have shipped 1.36 million metric tons of cocoa to ports so far this marketing year (October 1 to February 23), a 17% increase from last year, though the pace has slowed from the 35% rise seen in December.
Meanwhile, Ivory Coast has seized around 2,000 metric tons of falsely declared cocoa beans worth around $19 million at its main port in Abidjan.' source: Tradingeconomics:
COCOA Commodities CFD Market Bearish Heist Plan🌟Hi! Hola! Ola! Bonjour! Hallo!🌟
Dear Money Makers & Robbers, 🤑💰🐱👤
Based on 🔥Thief Trading style technical and fundamental analysis🔥, here is our master plan to heist the COCOA Commodities CFD Market. Please adhere to the strategy I've outlined in the chart, which emphasizes short entry. Our aim is the high-risk Green Zone. Risky level, oversold market, consolidation, trend reversal, trap at the level where traders and bullish robbers are stronger. 🏆💸Be wealthy and safe trade.💪🏆🎉
Entry 📈 : "The vault is wide open! Swipe the Bearish loot at any price - the heist is on!
Stop Loss 🛑: Thief SL placed at 11.600 (swing Trade) Using the 4H period, the recent / nearest low or high level.
SL is based on your risk of the trade, lot size and how many multiple orders you have to take.
Target 🎯: 9.600 (or) Escape Before the Target
Scalpers, take note 👀 : only scalp on the Short side. If you have a lot of money, you can go straight away; if not, you can join swing traders and carry out the robbery plan. Use trailing SL to safeguard your money 💰.
📰🗞️Fundamental, Macro, COT, Sentimental & Positioning:
COCOA Commodities CFD Market is currently experiencing a Bearish trend., driven by several key factors.
Bearish Factors
Improved Weather Conditions: Improved weather conditions in West Africa, the world's largest cocoa-producing region, could lead to increased cocoa production and lower prices.
Increased Global Production: Global cocoa production is expected to increase in the 2024-25 season, which could lead to a surplus and lower prices.
Weak Demand from Chocolate Manufacturers: Chocolate manufacturers, who are the largest consumers of cocoa, have been reducing their demand due to high prices and weak consumer demand.
Speculative Selling: Speculators have been net sellers of cocoa futures, which could lead to a price decline.
Technical Resistance: Cocoa prices are approaching technical resistance levels, which could lead to a price reversal.
Global Economic Slowdown: A global economic slowdown could lead to reduced demand for cocoa and lower prices.
Competition from Alternative Commodities: Cocoa faces competition from alternative commodities such as coffee and sugar, which could lead to reduced demand and lower prices.
Bearish Scenarios
Global Production Surplus: If global cocoa production exceeds demand, it could lead to a surplus and lower prices.
Economic Downturn: A global economic downturn could lead to reduced demand for cocoa and lower prices.
⚠️Trading Alert : News Releases and Position Management 📰 🗞️ 🚫🚏
As a reminder, news releases can have a significant impact on market prices and volatility. To minimize potential losses and protect your running positions,
we recommend the following:
Avoid taking new trades during news releases
Use trailing stop-loss orders to protect your running positions and lock in profits
📌Please note that this is a general analysis and not personalized investment advice. It's essential to consider your own risk tolerance and market analysis before making any investment decisions.
📌Keep in mind that these factors can change rapidly, and it's essential to stay up-to-date with market developments and adjust your analysis accordingly.
💖Supporting our robbery plan will enable us to effortlessly make and steal money 💰💵 Tell your friends, Colleagues and family to follow, like, and share. Boost the strength of our robbery team. Every day in this market make money with ease by using the Thief Trading Style.🏆💪🤝❤️🎉🚀
I'll see you soon with another heist plan, so stay tuned 🤑🐱👤🤗🤩
COCOA - We had a good drop, but demand is still high,so we go upHi guys, recently had a rollecoaster with Cocoa , but eventually the price went back and stabilized, now I am coming back to it hence , I see that there has been an ascending channel formulated. The overall technical overview is that the asset is indeed overbought, but at this current stage the fundamentals are out-weighting the technicals, bringing up the prices.
From a fundamental perspective, currently for yet another year we have had weather problems which causes the nearby crop of Cocoa in the Ivory coast which is the biggest exporter will be limited in spring as analysts are predicting. Additionally the weather circumstances have lead to an almost two year hiatus where we have problems with the supply of Cocoa, while the demand remains to be high.
‘Like coffee, chocolate is one of those things consumers are reluctant to give up. Poster items for inelastic demand.’
Entry: 11,203
Target 1: 12,404
Target 2: 13,036
Target 3: 14,026
As always my friends happy trading!
P.S. If you have questions or inquiries about one of my existing set-ups or personal questions / 1 on 1 sessions consider joining my channel so you can follow up with me in private!
"COCOA" Commodity CFD Market Heist Plan🌟Hi! Hola! Ola! Bonjour! Hallo!🌟
Dear Money Makers & Robbers, 🤑 💰
Based on 🔥Thief Trading style technical and fundamental analysis🔥, here is our master plan to heist the "COCOA" Commodity CFD market. Please adhere to the strategy I've outlined in the chart, which emphasizes long & Short entry. 👀 Be wealthy and safe trade 💪🏆🎉
Entry 📈 : You can enter a Bull or Bear trade at any point after the breakout.
Buy entry above 11,800
Sell Entry below 10,000
Stop Loss 🛑: Using the 2H period, the recent / nearest Pullbacks.
Goal 🎯: Bullish Robbers TP 13,600 (or) Escape Before the Target
Bearish Robbers TP 8,800 (or) Escape Before the Target
Fundamental Outlook 📰🗞️
The COCOA Market is expected to move in a Bullish direction, driven by the following key factors:
🔵Macro Factors:
Global Economic Growth: Rising global economic growth, particularly in emerging markets, is expected to increase demand for cocoa.
Inflation: Moderate inflation levels in major cocoa-consuming countries are expected to support cocoa prices.
Currency Fluctuations: A weaker US dollar is expected to support cocoa prices, as it makes cocoa more competitive in international markets.
🟡Fundamental Factors:
Supply and Demand Imbalance: The global cocoa market is expected to face a supply shortage in the 2022/23 crop year, supporting prices.
Weather Conditions: Favorable weather conditions in major cocoa-producing countries, such as Côte d'Ivoire and Ghana, are expected to support cocoa yields.
Certification and Sustainability: Growing demand for certified and sustainable cocoa is expected to support prices for high-quality cocoa beans.
🟠Sentimental Factors:
Investor Sentiment: Positive investor sentiment, driven by improving global economic growth and supply chain disruptions, is expected to support cocoa prices.
Market Positioning: The commitment of traders (CoT) report shows that hedge funds and other large speculators are net long cocoa, indicating a bullish sentiment.
Technical Analysis: Cocoa prices have broken out above a key resistance level, indicating a bullish trend.
- Bullish Sentiment: 83% of clients are long on COCOA, indicating a strong bullish trend.
- Bearish Sentiment: 17% of clients are short on COCOA, indicating a relatively weak bearish trend.
- Neutral Sentiment: No explicit data available, but we can infer it's relatively low given the strong bullish trend.
📌Please note that sentiment analysis can change rapidly and may not always reflect the actual market performance. These percentages are based on current market data and may not reflect future market movements.
That this is a general analysis and not personalized investment advice. It's essential to consider your own risk tolerance and market analysis before making any investment decisions.
📌Keep in mind that these factors can change rapidly, and it's essential to stay up-to-date with market developments and adjust your analysis accordingly.
💖Supporting our robbery plan will enable us to effortlessly make and steal money 💰💵 Tell your friends, Colleagues and family to follow, like, and share. Boost the strength of our robbery team. Every day in this market make money with ease by using the Thief Trading Style.🏆💪🤝❤️🎉🚀
I'll see you soon with another heist plan, so stay tuned 🫂
Cocoa Plunge Ahead – Targeting $9,853!📊 Trade Setup:
Entry Price: 10,877
Take Profit: 9,853 (at previous low)
Stop Loss: 11,883 (above the gap level)
📈 Analysis:
The previous buy trade in the channel hit the target perfectly by closing the gap and reaching our take profit before dropping significantly. Now, with the current bearish sentiment in the market, the setup points to another potential sell trade.
Given the price rejection near the gap level and the overall market pressure, we expect a further decline towards the previous low at $9,853, where strong support may come into play.
🎯 Target:
$9,853: Key support zone (previous low)
🔹 Risk Management:
Stop loss at $11,883, just above the gap level, where price may encounter resistance and trigger further downside.
⚡ Do you expect Cocoa to continue its bearish trend, or could we see a reversal? Drop your thoughts below! ⚡
Cocoa: Potential Reversal Opportunity After Recent DropAfter capturing the significant drop in Cocoa prices over the past few days, we could now be looking at a favorable setup for a reversal to the upside.
Key Observations
Demand Zone Reaction:
Price has entered a major Demand Zone , collected liquidity, and is showing a sharp bounce directly from the opening.
RSI Recovery:
The RSI is rebounding strongly from oversold levels, signaling a possible shift in momentum.
Gap to Be Filled:
There is a visible gap between 11,750 and 11,100 that aligns with our upward target. Filling this gap could provide the momentum for a bullish run.
Trade Setup
Take Profit: 11,750 (gap fill target).
Stop Loss: 9,525 (placed below the Demand Zone).
Risk Management Reminder
Cocoa is known for its volatility. Always apply proper risk management and adjust your position size accordingly to protect your capital.
Conclusion
This setup provides a solid risk-reward opportunity for traders watching the Cocoa market.
Bullish & Bearish cases for CocoaThe GOAT thinks a confirmation above the drawn resistance line (a bit above the double-top) will send the cocoa to 15k (well at least I have an excuse not to buy any chocolate for my boys).
A Rejection at that level will send us down, possibly an M top kind of move.
RSI was in negative divergence territory but now shows a possible breakout... this makes things a bit biased toward the bull case
I personally am too afraid to go long at this level.
I have a sell stop order at around 11k... I rather wait and see how this plays out around that hypothetical resistance line.
Cocoa short at 11,400 for a thousand dollarsThere is a potential short entry between the 11,200–11,400 zone, which aligns with a strong supply area causing a break of structure (BOS). This supply zone has shown significant resistance in the past, suggesting it could act as a reversal point.
The target for this short trade is around the 9,600–9,200 level, where buyers are expected to come back.
This setup depends on price reaching the identified supply zone and rejecting it aggressively. Monitor price action for confirmation signals before entering the trade.
if you are a beginner you can follow me and you will see when I enter and exit the trade.
Huge Cocoa Correction Ahead? Cocoa prices face a strong risk of correction back to $10,000 as bearish fundamentals stack up:
Supply Surge Ignored
Ivory Coast port arrivals are up 33% from last season, signaling a significant increase in supply from the world’s largest producer.
Demand Destruction at High Prices
All-time high prices are forcing buyers to scale back purchases or delay deals.
Economic slowdowns and weaker spending on luxury products like chocolate further reduce demand.
Liquidity Crunch in Physical Markets
Massive liquidity issues, including payment delays and a lack of new purchase deals, reflect stress in the cocoa trade and could lead to lower prices.
Profit-Taking and Market Correction
Cocoa prices appear overbought, increasing the risk of speculative profit-taking and a market pullback.
Ghana’s Supply-Boosting Reforms
Ghana’s President-elect plans to revamp the cocoa sector and improve production efficiency, which could add to future supply.
Stronger U.S. Dollar
A stronger USD makes cocoa more expensive for international buyers, reducing demand and putting pressure on prices.
Soft Commodities Correction
Coffee and sugar prices are already correcting, suggesting cocoa may be next in line as markets tend to move together during broader pullbacks.
COCOA overbought, high demand, low supply, but overboughtHi guys, we are going to take a look at a short term correction on the Cocoa, hence it has reacehed very high level in the RSI area, and it is very overbought. Keep in mind that this commodity is very volatile so treat with caution and be careful with your risk management!
Entry: 12,650
Target: 12,039
Stop: 13,080
As always my friends happy trading!
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Cocoa and Coffee: “very volatile” Since the beginning of 2024, cocoa futures have more than doubled in price and are currently climbing for the seventh week in a row, hitting record levels. The mix of limited supply, high demand, and uncertain weather is keeping the cocoa market unpredictable. Analysts at ING expect prices to stay volatile through next year.
Coffee has also seen a big price jump in 2024, reaching its highest level since 1977. Experts warn that it might take years for coffee prices to come back down. Analysts at Rabobank warned that commodity markets are “very volatile” and “very dangerous,”.
Traders in both the cocoa and coffee markets are keeping a close eye on inventory levels and weather forecasts because any disruptions could cause prices to swing even more.