London Cocoa 17/01 - Unfathomable Heights

Evening all. Today's chart is London Cocoa and while being relatively obscure, it provides us with a look at one of the most unhinged moments in trading that I've seen - showcasing a truly astronomical rise in price over the last year.

The monthly chart below from TradingView gives us an indication of just how shocking this rise is and that we are breaking new territory. Having said that, if we adjust the 1984 high of 2290 for inflation we would end up with a price in today's money of 7140! So who knows, maybe there is still plenty of room to run.

While this rise has been noteworthy on its own, there was a recent resistance line that I thought was shaping up nicely and presented a robust entry point, but wow was I wrong. The graph below shows, how the resistance line was formed and tested multiple times, showing a gradually declining trend (building my hopes) before getting absolutely demolished yesterday and today.

As we are now in quite literally "uncharted" territory, there is very little information on which way it's going. Depending on your faith in candlestick charting, today's candle could be showing signs of market uncertainty - forming a kind of spinning top but maybe that's just wishful thinking.

Trading volume during this period has been relatively low and increases moderately as the price starts its more volatile movements. This could suggest that the upward pressure isn't running out of steam just yet... It really is anyone's guess at this point.