Recommendation for Cocoa : Buy
Buy Stop : Above 2247
Stop Loss : Below 2109
| Indicator | Value | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Sell | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe #C-COCOA: D1 is retracing higher toward the 200-day moving average MA(200) after hitting 19-month low in the beginning of July. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 2247. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 2109. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (2109) without reaching the order (2247) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis
Rainfall in Ivory Coast was below average last week. Will the cocoa price rebound continue?