In light of the dramatic rise in cocoa prices and the gap created between the price of cocoa and the price of coffee, two products that had years of positive correlation between them, we examine the technical patterns of the price of coffee and recognize that the first phase of the correlative movement took place as we predicted and a converging triangle pattern did break out upwards. Now in front of us is a W template whose potential is not yet exhausted.
Attached is a weekly graph of the coffee contract showing the converging triangle pattern that has reached its price target as well as the W pattern that has not yet reached its predicted target:
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