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How Low Are Cocoa Prices Going
Michael Seery - IF - Wed Jan 11, 11:53AM CST

Cocoa Futures--- Cocoa futures in the March contract is down 83 points hitting a fresh contract low trading at 2124 as I'm currently sitting on the sidelines in this market, but if you do have a short position my recommendation as an exit strategy would be to place your stop above the 10 day high which stands at 2291 as who knows how low this commodity can actually go.

The chart structure in cocoa at the present time is solid as I had written about in previous blogs as a possible bullish position above the 4 week , however this trend continues to go to the downside so I'm avoiding this market at the present time and I'm certainly not recommending any type of bullish position.

Cocoa prices are trading below their 20 and 100 day moving average telling you that the short-term trend is lower with the next major level of support all the way down at the 2000 levels as this still probably has more room to run as the U.S dollars strength is absolutely crushing this market at the present time. Cocoa is grown in the Ivory Coast of Africa & has to be grown within 20 miles of the equator while also growing in very unstable countries, however everything is peachy keen at this point as there is very little bullish fundamental news to push prices up especially due to the fact that Christmas which is the high demand season is in the rear view mirror. TREND: LOWER–CHART STRUCTURE: IMPROVING

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-312-224-8140 he will be more than happy to help you with your trading or visit www.seeryfutures.com Skype Address: mseery TWITTER---@seeryfutures

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