Tentatively higher from an earlier low of $2,451, CME Cocoa is up to $2,480 per metric tonne today, adding $43, or 1.76%, to Friday's closing price of $2,437.
Cocoa could be slowing down soon as it approaches resistance at $2,492.5. Of course, crossing it might suggest further gains are ahead. Although up today, early price action saw the Cocoa future dropping below its 200 day Simple Moving Average at $2,453 — an early indicator that a new downward trend could be emerging.
Despite basking in an uptrend and bullish intraday sentiment, chart analysis indicates Cocoa is set for a reversal in the coming days.
Though CME Cocoa is going up, other Softs are underperforming — Cotton is trading around $78 (down $3.34). Sugar is down to $19.14, losing 19 cents, after closing at $19.33 in the preceding trading session.
Also worthy of note, United States Consumer Confidence expected to decline to 100 while its preceding data was 102.5, data will be available tomorrow at 15:00 UTC.
The Cocoa future hit a significant low of $2,211.5 around 2 months ago, but has since recovered 10.2%.