Cocoa and the Grinding DataPosted 07/19/2017 3:37PM CT |
September cocoa traded higher during Wednesday’s session – finding resistance again around 1955. The NY futures contract has recovered since hitting 1801 on July 12. Cocoa has found a range between 1800 and 1950, giving technical traders some guidance when entering new positions. The recent trade below the 9- and 18-day moving averages wasn’t enough to keep the market down; grinding data has taken over the trade for the next few days. Asian data came in at 9.9% for the second quarter – coming in lower than estimates. North American Q2 data will be released Thursday. The NA data should have a big impact on prices in the short-term. Wednesday’s trade saw a high of 1953, but the market couldn’t hold and close above 1950. The recent downtrend in the dollar is also directing cocoa. Look for Thursday’s grinding data, the currency trade and any new demand news to be the near-term guidance for establishing future positions.
Sep ’17 Cocoa Daily Chart