Cocoa is on a 6 day uptrend, gaining a total of 8.35%. Heading in the same direction for now — after closing the previous trading day at $2,771, the Cocoa future is up to $2,778 per metric tonne, which makes for a move of 0.25%/$7 today.
Concerning technical analysis and more specifically, trend indicators, investors are seeking long positions as Cocoa price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. According to momentum evaluation, the Relative Strength Index indicates the Cocoa future is currently 'overbought' which suggests new gains will be harder to obtain. Analysis based on the asset volatility indicates that CME Cocoa's upper Bollinger Band® is at $2,770, 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.
This rally in CME Cocoa's price coincides with other Softs as having closed the previous session at $80.25, Cotton is up 2.24% today to currently trade at around $82.05.
Furthermore, the market is looking at United States Existing Home Sales (Jan) is expected today at 15:00 UTC. United States FOMC Meeting Minutes will be released tomorrow at 19:00 UTC.
The Cocoa future has managed to gain 8.03% so far this year despite trading at lows around $2,211.5 previously.