Late September showed an Upthrust – new highs which were almost immediately “rejected”. More on this in the next post.
This caused Cocoa to fall down to the bottom of the channel.
Late October showed a Yum-Yum break of the channel low. This is time to get short.
This is a “hard” trade to take. As a trader, you are always looking for “bargains”. Trying to sell rallies is weak markets. This could be chasing the market. It has been said that the hardest trades to take are the ones you absolutely have to take.
Price has continued to fall from this point. Note the “L-formation” in late October.