COCOA SHORT 09/08
Hello everyone,
It is now clear that we're in a downtrend, as the RSI always rises back up after each low.
So there are several possible scenarios, but the most logical one would be a sharp fall towards the precedent lower low, as show the green and orange paths.
The red path shows the low probability path which grows back up to close the gap that was not closed yesterday, but it is highly unlikely.
We advise you to sell as soon as it opens but try to place a tight SL somewhere not too high because again, the change of a trend with cocoa can get very ugly very quick.
Hope it helps.
It is now clear that we're in a downtrend, as the RSI always rises back up after each low.
So there are several possible scenarios, but the most logical one would be a sharp fall towards the precedent lower low, as show the green and orange paths.
The red path shows the low probability path which grows back up to close the gap that was not closed yesterday, but it is highly unlikely.
We advise you to sell as soon as it opens but try to place a tight SL somewhere not too high because again, the change of a trend with cocoa can get very ugly very quick.
Hope it helps.
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