The size of the candle. Today's red candle is by far the largest, hence, the largest drop (or selloff).
As for 3:1, that's up to each trader.
Cocoa futures
- Thread starter schizo
- Start date
As for 3:1, that's up to each trader.
I couldn't find any alternatives, other than trading options on Cocoa futures (CME or ICE) or using CFDs.
Many thanks! Last year I was stalking it, it’s too bad Futures terrify me.
And here's a guy who trades options like there's no tomorrow.
It looks like the NVDA of commodities! I’ve been wanting to trade long since 2022 but I am terrified of futures.Keep your eyes out on this thing for the next few days. Looking very toppy here. It's practically begging to be sold.
View attachment 333742
You called it!Keep your eyes out on this thing for the next few days. Looking very toppy here. It's practically begging to be sold.
View attachment 333742
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Cocoa Prices Correct Lower on Concern Record High Prices Will Curb Demand
Barchart - Fri Feb 16, 7:28PM UTC
March ICE NY cocoa (CCH24) on Friday closed -255 (-4.28%), and Mar ICE London cocoa #7 (CAH24) closed -189 (-3.92%).
Cocoa prices on Friday closed sharply lower. Cocoa prices are correcting lower after a sharp five-week rally pushed prices to record highs and into overbought territory. Concerns that record-high cocoa prices will hurt demand have prompted some long liquidation in cocoa.
Cocoa prices have underlying support as the intense seasonal Harmattan winds and insufficient rain in West Africa are drying out cocoa fields and causing damage to the Ivory Coast mid-crop.
Lower cocoa production in the Ivory Coast, the world's largest producer, is a major bullish factor for cocoa prices. Monday's government data showed Ivory Coast farmers shipped 1.08 MMT of cocoa to ports from October 1 to February 11, down -38% from the same time last year.
https://www.barchart.com/futures/quotes/CC*0/overview
https://www.barchart.com/futures/quotes/CC*0/overview
Although it chopped 4 more days after I made that call, I'm glad that it finally buckled.
Ya gotta luv what you do.
Unlike NVDA, however, a commodity can reach a saturation point. While there is no shortage of devices that will need their chips, there is a limited amount of storage for choco powder, and a limited growing season, along consumer demand.
That chart schizo posted shows cocoa futures on an unsustainable trajectory.
If it cannot happen to CL futures, it certainly cannot happen to chocolate.