2026-01-10 17:35:35

Cocoa's price action has been disappointing—down roughly 8.96% last week after hitting a wall at the 200 EMA. This key resistance level proved too tough for the bulls to break through. On shorter timeframes, traders spotted something interesting: a potential inverse head and shoulders pattern beginning to form. Whether this setup can actually deliver a reversal or if sellers maintain control remains the question. The rejection at the 200 EMA suggests bears still have the upper hand, but the lower timeframe structure is worth monitoring closely for any signs of trend change.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

12 Likes

Reward
12
5
Repost
Share

Comment

0/400

DYORMaster

· 14h ago

200EMA this wall is really tough, are the bears still in control? --- Same old trick, trying to turn things around with a reverse head and shoulders? I doubt it. --- Cocoa dropped 8 points, this week's market is really damn tough. --- The lower structure is interesting, let's see if it can fool the bears. --- Reject again and again, when will the bulls finally get a breather? --- Short-term patterns, no matter how fancy, can't withstand major level resistance. Do you believe it? I don't. --- Monitoring... feels like it needs to break the bottom further to be convincing.

View OriginalReply0

SignatureLiquidator

· 14h ago

The 200 moving average is blocking again, this rebound is really weak... --- Inverse head and shoulders? Just listen, I still remain bearish. --- Cocoa drops another 8 points, the bulls are really done for. --- The structure at the lower level is indeed interesting, but I don't know if it can really turn the tide... --- It's the same pattern again, isn't it ultimately going to continue downward? --- The bears are holding control quite steadily in this wave. --- Let's see if the short-term cycle can break out, otherwise it's really over.

View OriginalReply0

NoStopLossNut

· 14h ago

The 200 MA resistance is so fierce, rebounds are just fleeting moments. In the short term, looking for reversal patterns doesn't seem to have much meaning. The bears are still too strong; I don't dare to go long at this position. For the inverse head and shoulders to be confirmed, it must break the 200 MA first. It's a bit early to talk about a reversal now. That's how a bear market is—every time it shows hope, it slaps you in the face... Sellers are completely in control of the rhythm. More confirmation is needed for bottom signals.

View OriginalReply0

quiet_lurker

· 14h ago

The 200 moving average is blocking again. Can the reverse shoulder really turn things around this time? It still feels like the bears are in control...

View OriginalReply0

GasFeeCryer