CME Cocoa goes up to $2,463 per metric tonne after dipping down to $2,436 earlier.
Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at $2,435, thereby suggesting that the Cocoa future is becoming overvalued. A study of Cocoa's historical price actions shows CME Cocoa could be slowing down soon as it approaches resistance at $2,469.33. Of course, crossing it might suggest further gains are ahead.
Overall, while the Cocoa future has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
While Cocoa is higher so far today, these Softs commodities are underperforming: Coffee is down to $171.2, losing $4.55, after closing at $175.75 in the preceding trading session. Cotton withdraws 2.39% to trade around $84.85. Sugar is down 12 cents from the beginning of the session and now trades around $18.59.
Furthermore, the market is looking at United States EIA Short-Term Energy Outlook is scheduled for tomorrow at 17:00 UTC.
Having set a significant high of $2,821 a month ago, CME Cocoa is trading 10.06% lower.