Long
Cocoa ETN Swing Long Setup On Forecast For Rising Cocoa Price
The price of cocoa could double by 2020 on rising demand for chocolate out of Europe. For years, cocoa has been weak because Europe consumers have been beaten down by the slowing European economy. Now, with ECB QE showing signs that it's helping turn the corner for Europeans, and with massive amounts of inflows into European stocks in anticipation of a rebound, cocoa could be an excellent long play. Chocolate is a consumer discretionary/cyclical product so if you believe Europe is in a recovery, this is a trade you may want to consider.
The chart of the cocoa ETN NIB shows an excellent oversold swing long entry off a double bottom reversal, with a nice clear stop loss level just below the double bottom in case the trade goes against us.
The chart of the cocoa ETN NIB shows an excellent oversold swing long entry off a double bottom reversal, with a nice clear stop loss level just below the double bottom in case the trade goes against us.
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