$CC #F: Cocoa Prices Offer a Great Opportunity before Inflation

Cocoa Monthly Elliott Wave Analysis 08.17.2022

The monthly chart below shows the cocoa seed front contract CC #F at NYBOT. From the important low in November 2000, the prices have developed a cycle higher in blue wave (I) of a super cycle degree. Hereby, wave (I) has demonstrated a leading diagonal pattern and has ended in March 2011 at 3775. From the all-time highs, a correction lower in wave (II) has unfolded as an Elliott Wave zigzag pattern. In 6 years, CC #F has become cheaper by more than 50% reaching 1756 level. It is the preferred view that an important bottom on April 2017 has been set and the correction has ended. From the lows, a new rally in prices within blue wave (III) may have started.

Cocoa Daily Elliott Wave Analysis 08.17.2022

The daily chart below shows in more detail the advance from the July 2020 lows where wave ((2)) has ended. From the bottom at 2092, one can observe an initial nest in waves (1)-(2) building up. To open up a new cycle, wave (1) has pushed higher and ended in Septmber 2020 at 2708. Thereafter, consolidation in wave (2) unfolds as an expanded flat and is still in progress. First, red wave A of (2) has ended in November 2020 at 2280 lows. Then, a connector in red wave B has printed a new high above wave (1) peak at the end of the same month November. Finally, from 2821 highs, an ending diagonal in wave C should close the nest.

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