Cocoa has some wild habits and the volatility has picked up lately, possibly because so much of it is grown in West Africa where there is a nasty virus outbreak, as you may have read elsewhere. The latest price move has been a drop that has now resulted in an extension at a daily scale as shown below. This offers another chance to buy it, as we recommended after the last bottom extension, getting out after the intervening top extension, also shown. The likelihood is that a range has formed that will be bounded by these recent signals. If another rally takes prices back up near the highs of around 3250 or 3300 then take profits. We refrained from issuing ‘sell short’ advice at that top extension because we were (and are) bullishly inclined toward commodities in general. This was an error on our part and so was a missed opportunity.
RE
