Cocoa Elliott Wave technical analysis [Video]
|Cocoa Elliott Wave analysis
After hitting a fresh record high in December 2024, Cocoa prices started correcting the resurgence from the October low. It appears the pullback from the record high is completed or very close to finishing. Thus, the commodity could be ready to smash the previous high for a new one.
Cocoa daily chart analysis
After finishing an all-time bearish cycle at $708 in December 2000, Cocoa prices have not looked back. The commodity has emerged in a clear bullish impulse structure from that low. it finished wave I at 3775 in February 2011 and then pullback in wave II in April 2017 at 1756 before it surged along the path of wave III. It breached the 3775 previous record high to another record high at 11722 in April 2024 to finish the wave (3) of ((3)) of III. The wave (4) pullback that followed ended with a zigzag structure at 6425 in October 2024 from where the current resurgence started, as shown on the daily chart. Upside remains favored for cocoa as buyers wait to buy from pullbacks to new highs.
Cocoa four-hour chart analysis
The H4 chart shows that the price has finished a 5-wave rally for wave 1 of (5). The pullback from December is now for wave 2. If the price reclaims the wave 1 high, then wave 3 will progress toward 20,000. However, wave 2 can complete a double zigzag to 8742-6795 before returning upside in wave 3. Provided 625 is not breached, cocoa prices should return for a new fresh high.
Cocoa Elliott Wave technical analysis [Video]
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