Over the last 6 days, the Cocoa future has fallen 3.52%. More of the same from yesterday's session: bearish sentiment ensured the Cocoa future finished yesterday's session lower. However, despite the downward bias, Cocoa etched out a distinct $2,287 to $2,319 session range.
Meanwhile, United States CFTC Gold speculative net positions released yesterday at 19:30 UTC with a figure of 77,000, while the previous figure was 94,400. Fresh CFTC Nasdaq 100 speculative net positions data from United States came out at 1,500. United States CFTC Crude Oil speculative net positions released yesterday at 19:30 UTC with a figure of 251,500, while the previous figure was 259,200.
Cocoa could begin to recover as it approaches significant support, now $6.67 away from $2,307.67. Dipping below could be an indication that further losses are ahead. Despite being in the red so far in the current trading session, the Cocoa future peaked above its 3 day Simple Moving Average around $2,317.67 — typically an early indicator of a new bullish trend beginning to emerge. The Cocoa future's lower Bollinger Band® is at $2,245, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. Despite this, the Cocoa future formed a session range of $2,287 to $2,319 leaving buyers and sellers highly concentrated around an active Fibonacci support level of $2,311.75.
Overall, looking at the technical analysis landscape, it seems Cocoa —which is currently on a downtrend— might reverse course and start pointing upward in the short term.
The Cocoa future's value drop coincided with the fact that Coffee descends 1.02% yesterday and closed at $190.9.
Having set a significant high of $2,821 26 days ago, the Cocoa future is trading 4.27% lower.