COCOA: On a multi month Higher High. How to trade it.

Cocoa has been trading on a multi-year Channel Up since May 2017 with the 1D chart trading near the overbought territory (RSI = 70.555, MACD = 51.220, Highs/Lows = 144.4643).

If the Channel stays intact then the price should pull back towards the 1D MA200 for a Higher Low near 2,365. If however it breaks as it did in March 2018 then it can easily reach 2,940 which is the 2 year high. We have identified 2,700 as this break out point. You may trade accordingly with a tight SL.







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