ICE Cocoa futures are showing signs of renewed strength after several choppy sessions. The action appears to have been testing a key resistance level identified by Autochartist on the 240 minute time frame, with Monday's move higher setting up for a possible continuation towards the target.
The initial breach of this key level resistance at $2,375 per ton triggered the upside forecast early last week. The resulting rally carried the price just barely below the target before a retracement brought it back below the breakout price. As is often the case, the key level became a pivot area on the chart which has thus far held. Expectations for a continuation back to the $2,469 per ton target will depend on the market's ability to hold the key level going forward. This makes Monday's solid close a potential spot to enter the market on the long side, with a stop loss below the pivot range. A move above $2.469 would fulfill the forecast, but also invite the potential for a sustained move higher as new bullish chart patterns occur as a result. For further information on this and other Autochartist products, visit our website at www.autochartist.com
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