Cocoa prices ended higher in Thursday's session to send the ICE futures over $100 per ton higher on the week. The gains appear to confirm that the long term uptrend remains intact and may have considerable upside potential from the current level. Autochartist is tracking the development of a well-formed ascending triangle on the 240-minute emerging patterns platform.
The ascending triangle chart pattern is often a continuation pattern, meaning the eventual breakout from this one may be to the upside, continuing the gradual uptrend that the market has been in for several months. The price is approaching the apex of the ascending triangle as the support and resistance level converge near the $2,400 per ton price point. Autochartist projects the current bounce from the swing low at $2,280 per ton trend line will continue to resistance near $2,440 per ton. This would complete the leg up within the triangle, positioning the market for either an upside technical breakout or else a retracement back to support to further develop the ascending triangle chart pattern. A breakout higher will generate a price forecast for a move well above the previous highs that form the top of the formation. For further information on this and other Autochartist products, visit our website at www.autochartist.com