Cocoa futures are pulling string gains on this latest uptrend, gaining nearly $200 per ton from the recent swing lows. Tuesday's price action stood out as the session formed one long green 4-hour candle to signify steady buying at higher prices throughout the day. Autochartist shows a key resistance level forming at the $2,375 per ton level which will likely be the next pivot point in this move higher
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The bulk of the trading. has been contained underneath this key level resistance as cocoa continues drawing buying interest within the sideways range. The last significant ally above the key level found heavy selling pressure just below $2,500 per ton.
A successful move above the key resistance tend line to complete the current rally would suggest a possible pivot higher towards this $2,500 level once again. A price reversal at or below the $2,375 key level would confirm a failed approach and revert the trading back towards the prior swing lows
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