#TradeOfTheWeek
This week's potential trade focuses on shorting New York cocoa futures. Technical analysis suggests a reversal at the resistance level around $9500. The medium-term trend for cocoa remains downward, and multiple attempts to break through this resistance in April have failed.
A short position can be considered around the current levels, up to $9450, with a stop-loss set at $9700 to limit potential losses. The target for this trade is the $8000 support level, which acted as a significant consolidation zone in March. This setup offers a favorable risk-reward ratio, with approximately $250 at risk for a potential reward of around $1450 per contract. As long as the resistance holds, the path of least resistance appears to be downward for New York cocoa.
