Let's look at cocoa and see what we have here.
Cocoa is trading clearly bearish since 13th of June, where we labeled end of a corrective retracement.
That said, we have already seen a five wave impulsive structure, which means current slow and three wave pull-back can only be a temporary correction. We see red waves a),b) and c) potentially completed, which means more weakness can follow in the near-term. But we also know that corrections can get complex, and this is why current drop can only be a fake one.
Cocoa, 30min
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