Cocoa Futures—Cocoa futures in the July contract is trading lower for the 4th consecutive session down another 12 points at 2366 posting modest losses as favorable weather conditions in West Africa boost the outlook for cocoa crops as abundant rain in West Africa should boost cocoa yields in the Ivory Coast and Ghana, the world’s 2 biggest cocoa producers.
I have been recommending a bullish position from around the 2410 level and if you took that trade continue to place the stop loss under the contract low which was hit on March 20th at 2200 as an exit strategy as I do want to give this trade some room.
Cocoa prices are still trading above their 20-day but below their 100 day moving average as the trend is higher to mixed as many commodity sectors are lower today as there is still a lot of uncertainty about the Coronavirus at this time. Volatility is average currently as historically speaking this commodity can have large price swings on a daily basis as I still remain bullish so continue to place the proper stop loss as that might be raised in next week’s trade therefor lowering the monetary risk.
CHART STRUCTURE: SOLID
If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com
If you’re looking to open a Trading Account click on this link www.admis.com
There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.