The sentiment that generated $49 in cumulative gains over the past 4 days was further evident for Cocoa. Today's session so far looks to be heading in the same direction — after closing at $2,529 yesterday, Cocoa began today at $2,534 with significant bullish sentiment driving Cocoa's price action higher. So far today, price action has drawn out a distinct $2,524 to $2,542 range.
United States GDP is next today at 13:30 UTC.
Uptick comes while some more positive signs for Cocoa are out as data for United States Consumer Confidence published yesterday at 15:00 UTC came out at 108.3, beating projections of 101 and showing improvement over the preceding figure of 101.4.
On the flip side, highly important Crude Oil Inventories data from United States beat analyst expectations of -1.66 million with a reading of -5.89 million.
At the same time, United States Existing Home Sales (Nov) released yesterday at 15:00 UTC with a figure of 4 million, while the previous figure was 4.43 million.
Technical analysis shows that Cocoa could be slowing down soon; it is getting close to the resistance line and is now at $2,547.67, only $10.67 away. Crossing the resistance line could, however, suggest that further gains are ahead. Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Asset volatility analysis shows that Cocoa's upper Bollinger Band® is at $2,555, this is a slight indication of a slowdown.
Overall, while the Cocoa future has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
While CME Cocoa is higher so far today, these Softs commodities are underperforming: Cotton is trading around $87.63 (down 67 cents). Coffee is down $1.55 from the beginning of the session and now trades around $167.8.
Furthermore, the market is looking at tomorrow at 13:30 UTC data for United States Core Durable Goods Orders will be released, with an expected decline to 0.1% from the preceding figure of 0.5%. Today at 13:30 UTC data for United States Initial Jobless Claims will be released, with an expected decline to 222,000 from the preceding figure of 211,000.
Furthermore, the market is looking at United States New Home Sales (Nov) is expected tomorrow at 15:00 UTC.
After hitting an important low of $2,211.5 approximately 2 months ago, the Cocoa future has bounced back 14.36% since.