- Analytics
- Technical Analysis
Cocoa Technical Analysis - Cocoa Trading: 2022-12-27
Cocoa Technical Analysis Summary
Above 2620
Buy Stop
Below 2410
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Buy |
Cocoa Chart Analysis
Cocoa Technical Analysis
On the daily timeframe, COCOA: D1 is in a long-term neutral range and is moving towards its upper border. He moved out of the triangle. Some indicators of technical analysis have formed signals for a further increase. We do not rule out a bullish move if COCOA: D1 rises above the latest high: 2620. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, the last four lower fractals, the lower Bollinger band and the 200-day moving average line: 2410. After opening a pending order, we move the stop order following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (2410) without activating the order (2620), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities - Cocoa
The International Cocoa Organization (ICCO) expects a reduction in the global cocoa bean production. Will COCOA quotes continue to rise?
According to the ICCO forecast, global cocoa production in the 2021/2022 growing season will decrease by 8% compared to the 2020/2021 season, and will amount to 4.82 million tons. At the same time, the volume of world world grindings will increase by 2%. This will lead to a decrease in world reserves of cocoa by almost 16%. Worsening weather conditions are cited as the main reason. However, some market participants do not rule out that the downward trend in the global harvest may continue against the backdrop of rising prices for fertilizers and pesticides. Drought in the Ivory Coast may become an additional positive for quotes. Recall that about 75% of the world's cocoa is grown in West Africa. In November 2022, cocoa production at the Ivory Coast fell by 6% y/y, while neighboring Ghana fell by 34% y/y, according to ICCO data.
- 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.
