Nib is an ETN which invests in Cocoa futures. It has broken through a downward trendline. It appears to be setting up for an inverse head and shoulders.
Trading plan:
Buy around downward blue support line. Stop loss just under the support line.
Targets are at the neckline of the Inverse H&S and also at the previous high where the green arrow shows.
Based on my study of the patterns in cocoa, I believe Cocoa is one of the most bullish commodities at this time. What do you think?
Trading plan:
Buy around downward blue support line. Stop loss just under the support line.
Targets are at the neckline of the Inverse H&S and also at the previous high where the green arrow shows.
Based on my study of the patterns in cocoa, I believe Cocoa is one of the most bullish commodities at this time. What do you think?
Commentaire:
Approximate Long targets
TG 1 $28
TG 2 $30
TG 3 $35
TG 1 $28
TG 2 $30
TG 3 $35
I am inclined to keep the right shoulder low level as the stop loss.
I am targeting a retest of the previous high around $35 per share.
I also think that over the next few months we may form a new upward trendline - provided that our stop-loss is not activated. If that upward trendline then fails, it would be another signal to get out.