Cocoa: oversold futures, is it time for a reversal?

COCOA: oversold futures with 37% decline in price for a year.

RSI crossed above 0,3 giving a signal for probable upward movement.

Engulfing bullish bar after a sharp short term decline with potential for increase in price.

Risky position for probable reversal of the trend so we can divide our position into parts to build it.

SL: 2113

Alternative scenario: If price breaks below 2113 this will give a sell signal which is not a place to enter since it will be too risky.

Stefan D. Angelov – Head of Stocks Trading

 Varchev Traders

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