By Alistair Holloway -
Dec 23, 2010 1:35 AM ET
Cocoa Prices May Rise 18% on `Bullish
Flag' Formation: Technical Analysis
may rise 18 percent by the end of next month after forming
a “bullish flag,” according to technical analysis by
Hackett Financial Advisors Inc.
attached chart shows New York cocoa prices in a flag
formation since the start of this year. It suggests
“a major bullish price spike” for cocoa in 2011, Shawn
Hackett, president of Boynton Beach, Florida-based Hackett
Financial, wrote in a Dec. 18 report. Cocoa futures
for March delivery in New York closed yesterday at $2,970
a metric ton on ICE Futures U.S. Prices rose to a 30-year
high of $3,510 on Dec. 16, 2009.
the end of January this bullish flag pattern should
break out to the upside,” Hackett said by phone on Dec.
21. “We would at least see a re-test of the prior high.”
has climbed 5.8 percent this month on speculation unrest
in the Ivory Coast, the world’s largest producer, will
disrupt exports. Presidential incumbent Laurent Gbagbo
and challenger Alassane Ouattara asserted victory in
the Nov. 28 vote. Cargill Inc., the biggest closely
held U.S. company, has removed its expatriate employees
from the country.
technical analysis, investors and analysts study charts
of trading patterns and prices to predict changes in
a security, commodity, currency or index.