The Cocoa future has been losing ground for 4 days Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. After closing the previous trading day at $2,760, Cocoa is up to $2,788 per metric tonne, which makes for a move of 1%/$28 today.
United States Fed Chair Powell testimony is next today at 15:00 UTC.
At the same time, data for United States Factory Orders released yesterday at 15:00 UTC is better than expected with -1.6%, but worse than previous figure of 1.7%.
Despite ticking up in the session, the short-term outlook has become negative after the MACD moved below its signal line — typically a bearish indicator that upward momentum is running out of steam. In contrast, 'Bullish Harami' is a candlestick chart indicator used for detecting reversals in an existing bear trend. It is generally indicated by a small price increase that's contained within a broader downward price movement and is commonly associated with a bearish trend coming to an end.
Overall, looking at the technical analysis landscape, it seems Cocoa is likely to reverse course and start pointing down in the short term.
A look at other Softs also shows upside as Coffee is up 1.24%.
Meanwhile, Cotton is trading around $84.56 (down 30 cents).
Also worthy of note, tomorrow at 15:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to -308,000 from the preceding figure of 1.17 million.
The market is looking forward to the release of new data: United States ADP Nonfarm Employment Change (Feb) is scheduled for tomorrow at 13:15 UTC. United States JOLTs Job Openings (Jan) is expected tomorrow at 15:00 UTC.
The commodity has been trending positively for about a month. Over the past 6 days, CME Cocoa has retreated 3.26% from a noteworthy peak of $2,853.