Cocoa: Cyclical Picture Is “Exciting”
by Vadim Pokhlebkin
Updated: February 09, 2021
Ask many commodity traders, and they'll tell you the factors they watch the most are supply, demand and weather.
Ask seasoned Elliott wave commodity traders, and they'll give you a dozen examples when supply, demand and weather suggested one thing -- but prices went in the opposite direction.
How come? That's because trends in commodity prices are subject to trends in collective investor psychology, just like any other market.
Another thing to know about commodity prices is that they moves in cycles -- from bullish to bearish and back again. Knowing how to time each cycle can be valuable information in itself, but when you combine it with Elliott wave analysis, you can make an even more confident forecast.
Watch our Commodity Junctures editor, Jeffrey Kennedy, walk you through a very "exciting" picture in cocoa.
Create a free account and join Club EWI. We’ve helped over ½ million traders and investors learn to use Elliott waves. You get:
- Full access to Elliott Wave Principle — Key to Market Behavior
- Exclusive articles and interviews with our analysts
- Invitations to access our premium analysis