Stories are wild about another Cocoa shortage looming in the world today. Oh, the horror of it all, if this world runs out sweet chocolate again.
With cocoa charts still pointing down, it’s hard to imagine a supply problem is actually here. There is the potential for another flat in the ending stage, which could still produce a massive spike to the upside. Supply has been devastated due to crop diseases, with Ebolaalso killing off many of the cocoa farmers. They also blame global warming for the sad state of cocoa production.
I posted cocoa with a best estimated wave count, but I assure you that any wave structures in cocoa are diagonal in nature. If this is to be confirmed in the future, then any impending rally should contain an inverted zigzag.
This is not going to happen overnight, as the probabilities of more short-term downside still exist. Even Coffee is reported to be in a shortage. Withdrawal from sugar and coffee, could send investors wild without another fix! 😀