The Cocoa Code - Smart Money is Preparing for a Bullish Move

Cocoa is setting up for a long trade upon a confirmed daily bullish trend change.

The fundamentals underlying this market suggest a bullish move of some significance is brewing, and would confirm if we see a daily bullish entry trigger.

Commercials at extreme in long positioning relative to last 26 weeks of positioning.

Advisor Sentiment Index at bearish extreme, a great contrarian signal when juxtaposed with the commercials positioning.

Open Interest is at a 3+ year low. Low levels of open interest are generally associated with market bottoms.

Valuation measure against Treasuries & Gold shows Cocoa is undervalued.

True Seasonal tendency for Cocoa to rally into April.

Front month premium implies the commercials want this commodity so bad that they are willing to pay more to acquire it now than later in the future. This implies a commercially driven bull market is at hand.

130 day cycle points to bullish momentum for Cocoa until May.

Accumulation by the commercials is evident via the ProGo & Ultimate Oscillator divergence.

What does this all mean? It means the fundamental conditions underlying this marketplace point towards a bullish move on the horizon.