Jump to content

Cocoa Commodity Elliott Wave Technical Analysis


Recommended Posts

Cocoa Elliott Wave Technical Analysis
Function - Counter-trend
Mode - Corrective
Structure - Emerging Zigzag
Position - Navy blue wave ‘c’
Direction - Navy blue wave ‘c’ is still in play
Details -  Prices breached 8626 to confirm the progress of wave c (circled). Further sell-off is expected toward 5,000. Wave (ii) appears to be resisted below 9,000. Thus, wave (iii) downside is favored.

The current movements in the cocoa market illustrate a clear downward trend. Cocoa is approaching the lows seen in May 2024, continuing its fall from the record high reached on April 19, 2024, at 11,722. Since that peak, the commodity has dropped by 30%. This downtrend is anticipated to continue, potentially bringing prices down to the 5,000 mark in the upcoming weeks.
 
Daily Chart Analysis
A close analysis of the daily chart shows that cocoa completed a significant bullish impulse wave cycle starting in September 2022, when prices were around 2,000. By April 2024, this impulse wave had increased prices by over 430%, reaching the all-time high. According to Elliott Wave theory, impulse waves are usually followed by a three-wave corrective structure. The current decline from the all-time high is thus seen as a corrective phase, expected to develop in an a-b-c wave pattern.
 
In this scenario, waves a and b (circled) have already finished, and the price is currently in wave c. Projections suggest that wave c will likely extend to 5,000 or lower before the bullish trend potentially resumes. This expected decline is consistent with the typical behavior of corrective waves following an impulsive move.
Commodities24(1).thumb.png.91911abb54785f720df19796d664027f.png
 
 
H4 Chart Analysis
The H4 chart offers a closer view of the sub-waves within this decline, showing a potential 5-3-5 corrective structure. In this structure, wave c is currently in its 2nd sub-wave, wave (ii), which seems to have completed below the 9,000 mark. The price is expected to break below the 7,000 level to continue its decline towards the 5,000 target. However, any further extension higher for wave (ii) should be limited below the 10,323 high, preserving the integrity of the corrective pattern.
Commodities24.thumb.png.6efa2bc16f54358602e2f25699c4706b.png
 
 
Summary
In summary, the Elliott Wave analysis indicates that cocoa is in the midst of a substantial corrective phase following its all-time high in April 2024. The key levels to monitor include the 9,000 mark, which wave (ii) has already dropped below, and the 7,000 level, which could indicate the continuation of the decline. The ultimate target for wave c is projected around the 5,000 mark, aligning with the typical behavior of corrective waves. This analysis highlights the importance of closely observing wave structures and key price levels to predict future movements in the cocoa market, offering valuable insights for both short-term and long-term trading strategies.

Technical Analyst : Sanmi Adeagbo 
Source : Tradinglounge.com get trial here!

 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • The story of this squirrel is a story of love and impact of social media. The memecoin has gain popularity, topping many exchange gainers list.
    • The Solana ecosystem continue to provide the best memecoin, with **** and WIF notably turning many into millionaires creating huge buzz on the ecosystem. Despite the hype around projects like Popcat and Goat, which many missed out on, the crypto community is always on the lookout for the next big wave. $MOODENG, inspired by the charming baby hippopotamus Moo Deng, generated huge attention recently especially as many top exchanges listed the meme. In the same trend another meme is currently trending in the industry, $PNUT. Peanut, inspired by a story of a Squirrel. Rescued by Mark Longo in 2017 after losing his mother, Peanut became an Instagram sensation, amassing over 534k followers. However, tragedy struck when state authorities seized Peanut, leading to his euthanization. This event not only raised questions about government overreach but also inspired the creation of $PNUT, serving as both a tribute to Peanut and a satirical take on current events. Buoyed by endorsements from influential figures like Elon Musk, $PNUT has quickly soared past a $100 million market cap, with predictions suggesting it could reach a billion. With listings already on exchanges like Bitget and potential future support from Binance, Could SPNUT be the next top meme on Solana?
×
×
  • Create New...
us