LONDON COCOA waiting to go LONG
Here I have spotted an interesting case of Value Investing. London Cocoa has lost 20% in the last two months while both 50 and 200 day EMA sits at 1730, so currently we can suppose this is the true London Cocoa value. Now, if you know the true value of something, you can save a lot of money when you buy it on sale. Of corse commodities go through periods of higher and lower demand leading to price fluctuations and Value investing is the process of doing detective work to find these secret sales on the markets and buying them at a discount compared to how the market values them. The whole idea of the value investor is just the one to identify and profit from significant price-to-value gaps by buying and holding these value stocks for the long-term to be finally rewarded handsomely.
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