Cocoa Elliott Wave Analysis – Bullish Outlook Amid Pullback
Cocoa is currently experiencing a pullback from its recent all-time high. However, this correction is expected to remain above the October 2024 low, preserving the long-term bullish trend. Traders may look for buying opportunities at the completion of this pullback.
Cocoa Daily Chart Analysis: Bullish Elliott Wave Progression
On the daily timeframe, cocoa has been forming a bullish impulse wave structure since April 2017. The price is currently in wave ((3)), representing the third wave of the larger bullish cycle.
- Wave (4) of ((3)) completed at 6.43 in October 2024.
- Wave (5) has started to develop, continuing the upward trend.
- The ongoing pullback is likely wave 2 of ((5)), and it will remain valid as long as the October 2024 low is not breached.
Traders should monitor this pullback for potential entry points to capitalize on the continuation of the bullish trend.
Cocoa H4 Chart Analysis: Fibonacci Support Zone in Focus
On the H4 chart, the sub-wave structures of waves 1 and 2 of (5) are unfolding.
- Wave 2 is taking shape as a double zigzag correction, moving into a critical Fibonacci support zone between 8.68 and 6.76.
- This zone could act as a strong support area, triggering the next bullish wave (wave 3).
- As long as 6.43 remains unbroken, buyers should anticipate a continuation of the uptrend from this Fibonacci support level.
Technical Analyst: Sanmi Adeagbo
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