Cocoa watch for a minor correction

Mthokozisi Mpofu Knars Capital

The chart below shows Cocoa which has been in a bullish run since the 8th of July. It completed an impulsive five-wave move on the 3rd of September, this move higher has slowly corrected lower to the 61.8 Fibonacci level. The previous wave 4 lower, which is marked by the yellow zone.

We have an initial breakaway gap followed by acceleration and a minor correction lower. We can expect the price to continue pushing higher and retest the previous X wave and wave 5 high. Keep an eye for a minor correction lower and a push higher on the minor degree.

Res: 2470.6; 2557.8; 2704.5
Sup: 2400.9; 2328.4; 2226.8

Author

Mthokozisi Mpofu

Knars Capital

Mthokozisi Mpofu is the Managing Director of Knars Capital Pvt Ltd, an investment advisory firm helping African SMEs secure growth capital and become investor-ready.

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