After closing the previous trading day at $2,451, CME Cocoa is up to $2,530 per metric tonne, which makes for a move of 3.22%/$79 today.
Uptick comes while some more positive signs for the Cocoa future are out as highly important Initial Jobless Claims data from United States beat analyst expectations of 235,000 with a reading of 225,000.
Meanwhile, United States ISM Manufacturing PMI (Nov) released yesterday at 15:00 UTC with a figure of 49, while the previous figure was 50.2. United States Core PCE Price Index (MoM) (Oct) came out at 0.2, while a consensus of analysts was expecting 0.3.
Trend-focused traders would be interested to note that the MACD index is indicating that momentum is shifting from bearish to bullish following a positive crossover. When the MACD rises above the signal line, it is typically considered to be a bullish development favoring long positions. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at $2,582.78, thereby suggesting that Cocoa is becoming overvalued.
Notwithstanding Cocoa's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Rallies can also be seen in other Softs, Cotton gained 0.58% and is now trading at $85.34.
While Cocoa is higher so far today, these Softs commodities are underperforming: Coffee is down $4.75 from the beginning of the session and now trades around $165.15.
Furthermore, the market is looking at projections for United States Non Farm Payrolls are set for a continuation of decline with 200,000 while previous data was 261,000; data will be released today at 13:30 UTC.
Also worthy of note, United States Unemployment Rate is expected today at 13:30 UTC.
2 months ago, Cocoa fell to a low of $2,211.5 but has since recovered 10.83%.