Cocoa has hit levels which has previously proven to be support levels in 2011/12 and again in 2013. I believe that this may be the turning point for the cocoa price, after a rough 2016 with a 32% decline. If the support level is broken, though, it's probably wiser to open a short position.
What's interesting is that the short interest in cocoa is very high, and many traders and institutions hold a short position in cocoa, which could open up for a so called "short squeeze".
The short interest is something I would monitor carefully, because if we see a decline in short positions, this could indicate that more people believe in a rise in cocoa prices, and have either just covered their short, or switched sides of the trade.
What's interesting is that the short interest in cocoa is very high, and many traders and institutions hold a short position in cocoa, which could open up for a so called "short squeeze".
The short interest is something I would monitor carefully, because if we see a decline in short positions, this could indicate that more people believe in a rise in cocoa prices, and have either just covered their short, or switched sides of the trade.