After closing the previous trading day at $2,866, the Cocoa future is up to $2,919 per metric tonne, which makes for a move of 1.85%/$53 today.
Uptick comes while some more positive signs for Cocoa are out as data for United States Crude Oil Inventories published yesterday at 14:30 UTC came out at 597,000, beating projections of -583,000 and showing improvement over the preceding figure of -3.74 million.
On the flip side, Producer Price Index in United States fell short of market expectations (0.1%) with a reading of -0.5%, continuing the decline from the previous figure of 0%. United States Initial Jobless Claims published today at 12:30 UTC came out at 239,000, falling short of the 232,000 projections and continuing its decline from the previous 228,000 figure.
'Bearish Harami' is a candlestick chart indicator used for detecting reversals within a prevailing bull trend. It is generally indicated by a small price decrease that's contained within a broader upward price movement and is commonly associated with a bullish trend coming to an end. Bollinger Band® analysis indicates that current price action is approaching the upper band at $2,980.6, thereby suggesting that the Cocoa future is becoming overvalued.
After posting consistent gains as part of its uptrend and being lifted by intraday sentiment, technical factors suggest CME Cocoa is set for a reversal in the coming days.
This rally in CME Cocoa's price coincides with other Softs as Coffee jumps 3.61% to trade around $195.3. Having closed the previous session at $82.39, Cotton is up 1.13% today to currently trade at around $83.32.
Furthermore, the market is looking at United States Core Retail Sales expected to decline to -0.3% while its preceding data was -0.1%, data will be available tomorrow at 12:30 UTC.
Furthermore, the market is looking at United States Retail Sales figure is projected at -0.4%. It previously stood at -0.4%; data will be released tomorrow at 12:30 UTC.
The commodity has been trending positively for about 30 days. CME Cocoa reached a significant high of $2,931 around 13 days ago but has lost 2.22% since then.