Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to long-term trends, it does not define them. The focus on short-term noise rather than trends, a source of confusion for the majority of investors, leads to the creation of bagholders at major trend transitions.
ALIGNMENT (Price & Volume)
Cocoa's composite trend (Up, Up, Cons) is an interesting consolidation. The daily alignment, while extended, is Up. The weekly alignment is also Up and early cycle. The primary trend remains in consolidation, but is fairly close to upside alignment. This combination perks the interest of the bulls - no doubt about it.
ENERGY (Diffusion Index)
Cocoa's leverage profile (WA, DI, DI2) is 92%, 4%, -10%. Clearly participation in cocoa is growing as WA = 92%. 100% is max participation. The energy build is roughly neutral, but that could change into the next decline. Cocoa produced two large energy builds in 2018. These energy builds are likely responsible for the push towards triple alignment and upside alignment of the primary trend. Encouraging, but patience is still required.
Participation (ProIndex)
Cocoa's ProIndex supports the ebb and flow of trading. It's not showing significant bullish or bearish divergences, but this doesn't diminish cocoa's evolution towards a primary trend flip.
Cocoa is a real opportunity in the making. Those that nibbled (bought) the 2018 bullish energy builds are looking smart and waiting patiently for a primary trend flip. Please add Cocoa as a market to watch in the Matrix.