(March 25, 2002) COCOA: The trend in Cocoa is bullish but there are indications that a market correction is at hand. The daily trend has turned to bearish and the weekly chart of Cocoa clearly shows stochastics crossing over after reading overbought, implying a move lower. Support should be found in the 1473-1480 range. Traders short this market will want to exit their position prior to prices reaching this level. More than likely Cocoa will bounce higher on the first test of confluence support. This could be the beginning of a major trend change in this market. In the coming weeks we will want to keep an eye on the weekly trend for signs of a new bear market.
