CME Cocoa is on a 4 day uptrend, gaining a total of 2.83%. Consistent for now — CME Cocoa posts light gains on a low-volatility day, ranging between $2,502 – $2,523 and is now at $2,511 per metric tonne.
United States Consumer Price Index is next today at 13:30 UTC.
At the same time, United States Federal Budget Balance (Nov) came out at -249 billion, while a consensus of analysts was expecting -248 billion. United States 10-Year Note Auction released yesterday at 18:00 UTC with a figure of 3.625, while the previous figure was 4.14. Fresh 3-Year Note Auction data from United States came out at 4.093.
Despite posting gains so far today, Cocoa slid below its 3 day Simple Moving Average at $2,496 in earlier trade — an early indicator that a negative trend could be emerging. Cocoa's upper Bollinger Band® is at $2,565, this is a slight indication of a slowdown. In contrast, Cocoa broke through the $2,517 resistance, climbing $6 above it.
After posting consistent gains as part of its uptrend and being lifted by intraday sentiment, technical factors suggest CME Cocoa is set for a reversal in the coming days.
This rally in Cocoa's price coincides with other Softs as Cotton added 2.13% to its value, now trading at $81.08.
Moreover, macro data could boost sentiment further as United States Crude Oil Inventories is projected to outperform its last figure with -3.91 million. It previously stood at -5.19 million; data will be released tomorrow at 15:30 UTC.
The market is looking forward to the release of new data: United States Consumer Price Index is expected today at 13:30 UTC. United States Interest Rate figure is projected at 4.5. It previously stood at four; data will be released tomorrow at 19:00 UTC.
Cocoa is up 13.14% from the significant low of $2,211.5 it hit 2 months ago.