After closing at $2,485 yesterday, the Cocoa future opened today at $2,489, to be greeted by bearish sentiment that overshadowing today's price action. Irrespective of the bearish mood, the Cocoa future retains a distinct $2,455 to $2,506 daily range.
United States's Consumer Confidence new data released of 100.2 below its previous figure.
On the flip side, highly important Consumer Confidence data from United States beat analyst expectations of 100 with a reading of 100.2.
Meanwhile, United States API Weekly Crude Oil Stock released today at 21:30 UTC with a figure of -7.85 million, while the previous figure was -4.82 million. United States S&P/CS HPI Composite – 20 n.s.a. (YoY) (Sep) came out at 10.4, while a consensus of analysts was expecting 10.8.
Despite being in the red so far in the current trading session, Cocoa peaked above its 200 day Simple Moving Average around $2,453 — typically an early indicator of a new bullish trend beginning to emerge. CME Cocoa could begin to recover as it approaches significant support, now $33.33 away from $2,433.67. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems the Cocoa future might start pointing upward in the short term.
Though Cocoa has been dropping, other Softs have been performing better: Coffee gained 3.56% and is now trading at $168.65. Cotton added 2.18% to its value, now trading at $80.67. Sugar is up 0.62%.
Some optimism can drawn from the fact that United States Pending Home Sales is projected to outperform its last figure with -5%. It previously stood at -10.2%; data will be released tomorrow at 15:00 UTC. United States Crude Oil Inventories is projected to outperform its last figure with -2.49 million, having previously been at -3.69 million. The figure will be published tomorrow at 15:30 UTC.
Furthermore, United States ADP Nonfarm Employment Change (Nov) scheduled to come out tomorrow at 13:15 UTC.
Cocoa is up 12.37% from the significant low of $2,211.5 it hit 2 months ago.