Cocoa Futures

Cocoa futures in the May contract settled last Friday in New York at 2134 while currently trading at 2163 continuing its slow bullish grinding momentum to the upside as I have been recommending a bullish position over the last couple months from the 1990 level as I still remain bullish this commodity as there is room to run to the upside in my opinion. If you took the original trade continue to place the stop loss at 1991, however in Tuesday's trade that will be raised to 2005 & in Wednesday's trade that will be raised to 2020 as the chart structure will improve on a daily basis, therefore, lowering the monetary risk as this is by far the strongest soft commodity.

Cocoa prices are trading above their 20 and 100 day moving average as the next major level of resistance is at the contract high at 2235 & if that is broken look out to the upside in my opinion as prices bottomed out in December as the U.S dollar is still right near a 3 year low which is supporting prices here in the short-term. The volatility is still relatively low as I still think there could be problems that develop in West Africa politically speaking and when that does occur historically speaking prices can go wild to the upside so continue to play this higher while maintaining the proper stop loss as I will be looking at recommending another bullish position once the risk/reward become in your favor.

TREND: --HIGHER

CHART STRUCTURE: SOLID

VOLATILITY---MEDIUM