MY COCOA LONG IDEA 01/11/2024*Did not enter this trade yet*
Direction: Long
SL: 7425.4
Indicators:
1. MA (20,50,100,200)
2. Trendline - Algo
3. Support and Resistance
4. I also use MT5 - Tradingcentral tools
5. Fib
Time Frame: 4h (I also use other time frames mainly 1D because I like to trade for long period of time)
Technical:
1. MA 20 (Yellow) is very bearish and below the MA 100 and 200 (Purple and Red) but I expect a reversal in this pattern.
2. Red trendline was broken previously so I'm looking for a breakthrough the green trendline.
3. Price respected the Support zone and is rising towards the fib level at 8216.2.
5. Tradingcentral tool signaling RISE on all time frames signifying a very bullish Price action.
Fundamental and economic:
1. COCOA is a very tricky commodity but we can simplify this by looking at the COT data where they were short about 1-2 weeks ago making a short-term bearish setups and I think we are past that phase because in the long run COT is bullish on COCOA.
2. Q4 historically is bullish for this pair according to the seasonal indicator by Tradingview.
3. US Elections, Halloween, Winter season, and Christmas is an influence in the Demand of Cocoa.
