Cocoa setup could prompt buy or short, Linda Raschke notes

Cocoa setup could prompt buy or short, Linda Raschke notes
Cocoa buy or short signals discussed

A trading model for cocoa will generate a buy signal if the price trades above yesterday's high today or tomorrow.

Linda Raschke, founder of LBR Asset Management, added that cocoa has experienced an extended downward run, and the first move above the 5-period simple moving average could set up a short sale. She stated she will continue to follow the situation, noting that everyone trades cocoa.

Raschke has previously explained the importance of volatility breakout and range expansion models in trading here. In another analysis, she identified a selling climax and technical chart patterns in silver that indicated a potential upside reversal here. Her recent comments on cocoa follow a continued focus on technical models and chart-based trade setups.

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