• Cocoa broke resistance level 2600.00
• Likely to rise to resistance level 2700.00
Cocoa recently broke through the resistance level 2600.00 (top of the minor correction B from the middle of November, as can be seen from the daily Cocoa chart below). The breakout of the resistance level 2600.00 accelerated the active short-term upward impulse wave 3 of the longer-term upward impulse wave (3) from the middle of December.
Given the rising risk-on sentiment that can be seen across the commodity markets today – Cocoa can be expected to extend the gains toward the next resistance level 2700.00 (former monthly high from September and the target for the completion of the active impulse wave 3).