ELLIOTT WAVE INTERNATIONAL
P.O. Box 1618, Gainesville, Georgia
800-336-1618
(March 14, 2002) COCOA: May cocoa is becoming increasingly vulnerable to a sizable decline. If cocoa trades much below the 1475 level, it should signal that a top is in place that will eventually lead to a larger decline to near 1250.
In May cocoa, a third wave rally has been in force since the September, 2001, low at 921. Within this advance, wave v of 3 began at 1265 on January 22. Wave (v) of v of 3 started at 1390 on February 20. Thus, the culmination of the September rally is quickly approaching.
Cocoa May Contract Daily
© March 2002 Elliott Wave International.
Resistance for wave v of 3 occurs at 1552/1608. This area incorporates the points at which wave (3) will equal a 1.618 multiple of wave (1) and wave 3 will equal a 4.236 multiple of wave 1. In addition, wave v of 3 will equal a 1.618 multiple of wave i of 3 at 1608.
Jeffrey Kennedy, Editor www.elliottwave.com