Chart of the Day - Tuesday, March 26, 2024

🏆 Today’s Chart of the Day was shared by Brian G. (@alphacharts).

• Cocoa has gone parabolic recently. Futures are up +228% in the past 12 months, shattering the previous record of +111% in 2022.

• Fighting a parabolic uptrend is akin to stepping in front of a freight train. However, stepping aboard this train would also be dangerous.

• Brain reminds us that several other commodities, including wheat, corn, natural gas, and lumber, have gone parabolic since 2020. All four round-tripped it, giving back triple-digit gains.

The takeaway: Legendary technician Bob Farrell said it best —“Parabolic advances usually go further than you think, but they do not correct by going sideways.”