Jump to content

Cocoa Commodity Elliott Wave Technical Analysis


Recommended Posts

Posted

Cocoa Elliott Wave Analysis

Cocoa Market Analysis
Cocoa prices have seen reduced volatility since July 2024, following significant price swings in June. The commodity is expected to continue its corrective decline from the all-time high of 11,722, which was reached on April 19th.
 
Daily Chart Analysis
On the daily chart, cocoa completed a major bullish impulse wave cycle that began in September 2022 when prices were around 2,000. By April 2024, this impulse wave had driven prices up by over 430%, culminating in an all-time high. According to the  Elliott Wave theory, the market typically undergoes a three-wave corrective phase after an impulse wave. The current decline from the all-time high is likely part of this corrective phase, unfolding in an a-b-c wave pattern.
In this structure, waves a and b (circled) have already been completed, and the price is now in wave c. This wave c is projected to extend lower, potentially reaching 5,000 or below before the overall bullish trend resumes. This decline aligns with the typical behavior of corrective waves following a strong impulsive move.
Commodities24.thumb.png.e27d4a835656df52afb8e37c7d48e1cf.png
 
 
H4 Chart Analysis
The H4 chart provides a detailed view of the sub-waves within the ongoing decline, suggesting a potential 5-3-5 corrective pattern. Within this pattern, wave c is currently progressing through its 2nd sub-wave, wave (ii), which could rally to retest the 9,000 level. As long as this bounce remains corrective and encounters resistance below the 10,323 high, the downtrend is expected to resume, driving prices toward the 5,000 major support level.
Commodities24(1).thumb.png.5594fa4fecd4782683d3b8deb2e2ec66.png
 
 
Conclusion
Cocoa is in the midst of a corrective phase following a significant bullish run. The expected continuation of the decline, especially if wave c extends as projected, presents opportunities for sellers. Traders should monitor the 9,000 and 10,323 levels for signs of resistance, which could signal the renewal of the downward trend.
 
Technical Analyst : Sanmi Adeagbo
Source : Tradinglounge.com get trial here!
 

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

    • With Bitcoin aiming for a new ATH, this staking might be the best option to maximum holding
    • Tbh, trading can be frustrating, I keep trying different strategy to perfect my trading skill but all seems to be in vain. Recently, I learnt we can use AI to predict the market to trade, so I decide to start asking AI to analyze when btc is overbought so I can look for short entry but this seems not to work against as most trade I enter end up hitting my SL. I know this is part of the learning process so I don’t risk too much but it hurt to lose fund especially when you are trying your best to make your first positive trade. Sometime, I just feel the market is totally against me and that further discourages me from futures trading. Recently, I got introduced to BTC staking on some platforms like BGBTC on bitget, Babylon chain, Solv protocol, Coredao etc but that doesn’t quench my hunger to understand BTC volatility since I will just stake my btc and earn apr. I want to understand how this volatility works so I can start making something from futures trading rather than just staking to earn apr. Also, I feel staking is for spot traders that intend to hold for a longer period and that doesn’t expose you to the market. I am not like most trader that prioritize profit over knowledge even when that is the final goal.
    • $ETH will surpass ATH this month and hit $7-8k next year
×
×
  • Create New...
us