(March 11, 2002) COCOA: The daily and weekly trends in cocoa are both bullish as prices screamed higher again this past week. This bull market will end one day but I believe that it is still better to trade it from the long until we have an objective sell signal. For the moment I recommend standing on the sidelines until there is a trend change or until prices correct lower to weekly support. A look at the weekly chart shows that there is an area of Fibonacci confluence at the 1340 price area. 1340 is both a 61.8% retracement of the move that began in early December and also a 38.2% of the larger thrust that began in October at 1000. Cocoa should find significant support on the first test of this level.
