COCOA & SOY MEAL

I analyzed Cocoa prices in October and drew attention to the strong horizontal resistance at 2,800 levels. That study needs an update now as the price is challenging the strong resistance for a possible breakout. Higher prices could be seen in the following weeks once this base formation completes with a similar breakout that took place in the beginning of 2007.

Soy Meal is another commodity that could move higher in the following weeks as the price finds support between 380 and 390 for the 5th time over the past two years. Last one year’s trading range has been between 380 and 550. A buy signal on weekly MACD, similar to earlier reversals, will confirm the bullish outlook for the short/medium-term. Price could target 550 levels once again.