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Cocoa Technical Analysis - Cocoa Trading: 2020-07-01
Cocoa Technical Analysis Summary
Below 2169
Sell Stop
Above 2385
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| Donchian Channel | Sell |
| MA(50) | Sell |
| Fractals | Sell |
| Parabolic SAR | Sell |
Cocoa Chart Analysis
Cocoa Technical Analysis
On the daily timeframe #C-COCOA: D1 has fallen below the 50-day moving average MA(50) which is declining. We believe the bearish momentum will continue after the price breaches below the lower Donchian boundary at 2169. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 2385. 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 (2385) without reaching the order (2169) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of Commodities - Cocoa
Coronavirus outbreak negatively impacts chocolate consumption. Will the cocoa price slide continue?
Chocolate global consumption has suffered from shutdowns since coronavirus outbreak. The International Monetary Fund lowered its outlook for the world economy couple of days ago. This is bad news for cocoa consumption, which is positively correlated with gross domestic product. In the year ended June 14, US sales of candy chocolate at traditional retail outlets fell 1.9% from a year earlier, according to IRI, a Chicago-based market researcher. Expectations of lower demand are bearish for cocoa.
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