Stable at $2,655 and still trending upwards, Today's session might suggest a slow down — the Cocoa future trades at $2,655 per metric tonne, after ending yesterday at $2,651.
Cocoa's upper Bollinger Band® is at $2,703.46, suggesting that a downward move may follow.
Despite the market lacking direction, technical chart analysis strongly suggests the Cocoa future is positioned for a downward move in the near term.
Meanwhile, mixed performances are seen in other Softs as Sugar added 0.71% to its value, now trading at $19.87. Coffee is down to $150.6, losing $1.1, after closing at $151.7 in the preceding trading session.
Data to be released later is expected to clarify investor sentiment while boosting price action volatility as United States Producer Price Index projected to come out at -0.1% — worse than previous data of 0.3%; data will be released tomorrow at 13:30 UTC. United States Core Retail Sales expected to decline to -0.4% while its preceding data was -0.2%, data will be available tomorrow at 13:30 UTC. Projections for United States Retail Sales are set for a continuation of decline with -0.8% while previous data was -0.6%; data will be released tomorrow at 13:30 UTC.
The commodity has been trending positively for about a month. This year has been a bright one for CME Cocoa after trading as low as $2,211.5 and going on to appreciate by 3.07% year to date.