COCOA's Rally Resumes After Multi-Month Correction
18 November 2024
In today's technical piece, let's dive into COCOA, which experienced a robust climb toward the end of the previous year, peaking at an all-time high in April. However, since reaching that peak, COCOA underwent a multi-month correction. This pullback helped establish a key horizontal support level just below $7,000, which proved significant. The price rebounded from this support in late October, initiating a new upswing.
This current upward movement has gained considerable strength, breaking through multiple resistance levels. Specifically, two black downtrend lines were breached, and last week, the price managed to surpass a red horizontal resistance around $8,800. This breakout signals renewed positive momentum and generates a buy signal, indicating that the upward trend may continue. I am optimistic that COCOA is poised for a more substantial rise from this point.