- Analytics
- Technical Analysis
Cocoa Technical Analysis - Cocoa Trading: 2020-12-17
Cocoa Technical Analysis Summary
Below 2485
Sell Stop
Above 2705
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| Donchian Channel | Sell |
| MA(100) | Buy |
| Fractals | Sell |
| Parabolic SAR | Sell |
Cocoa Chart Analysis
Cocoa Technical Analysis
On the daily timeframe #C-COCOA: D1 is testing the 100-day moving average MA(100) which is rising still. We believe the bearish momentum will continue after the price breaches below the lower Donchian boundary at 2485. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 2705. After placing the pending order the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (2705) without reaching the order (24785) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of Commodities - Cocoa
The International Cocoa Organization downgraded its forecast for global cocoa grindings. Will the cocoa price slide continue?
Coronavirus outbreak negatively impacts chocolate consumption. Global chocolate consumption has been negatively affected by lockdowns which are being reintroduced in many countries this holiday season. The International Cocoa Organization (ICCO) cut its forecast for global grindings in the 2019/20 season by 153,000 tons or by 3.2% over year in its latest quarterly update on December 2. Grindings are an indicator of cocoa demand. ICCO upgraded its estimate of end of season stocks by 1.1% at the same time. It points to increased supply. Estimates of lower demand are bearish for cocoa.
- Get Certificate
Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.