During a 6 day uptrend, the Cocoa future gained a total of $82, or 3.07%. Bucking the trend and turning lower, struggling to find upward momentum, Cocoa has shed $7 to currently trade at $2,517 per metric tonne as it ranges between $2,509 and $2,544 so far today.
United States's Retail Sales new data released of -0.6% below its previous figure.
Following a previous reading of 1.2%, Core Retail Sales in United States released today at 13:30 UTC fell short of the 0.2% figure expected by analysts with an actual reading of -0.2%. Retail Sales in United States fell short of market expectations (-0.1%) with a reading of -0.6%, continuing the decline from the previous figure of 1.3%.
While price action maintains a negative bias, United States Philadelphia Fed Manufacturing Index (Dec) released today at 13:30 UTC with a figure of -13.8, while the previous figure was -19.4.
Cocoa made an initial break below its 5 day Simple Moving Average at $2,522.6, a possible indication of a forthcoming negative trend. 'Bearish Harami' is a candlestick chart indicator used for detecting reversals within a prevailing bull trend. It is generally indicated by a small price decrease that's contained within a broader upward price movement and is commonly associated with a bullish trend coming to an end. The Cocoa future's upper Bollinger Band® is at $2,574 which indicates a further downward move may follow. In contrast, CME Cocoa could begin to recover as it approaches significant support, now $4 away from $2,513. Dipping below could be an indication that further losses are ahead.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts CME Cocoa to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the Cocoa is expected to attract significant bearish sentiment in the coming days.
In the meantime, negative performances are also seen in other Softs as Sugar is down to $19.96, losing 33 cents, after closing at $20.29 in the preceding trading session.
Positive performances can be seen by looking at other Softs markets as Coffee increases 2.32% to trade around $172.05.
CME Cocoa hit a significant low of $2,211.5 around 2 months ago, but has since recovered 14.13%.