Cocoa has been experiencing volatile price action as of late, falling more than 3% yesterday and trading below the 50-day moving average. This comes following global demand concerns as well as minimal support from the Euro and the British pound, which have been experiencing downward pressure from the surging U.S. dollar. Cocoa appears to have broken a longer term trend line, however, overnight news of added export demand from Ghana may provide support as well as fuel a minor corrective move. Global supply outlook has remained bullish although it will be important to continue to monitor demand as well as grinding data ahead of the conclusion of the season. Cocoa appears to be slightly overbought in the near-term with resistance at 2709 and 2806 respectively and support at 2574. 

Cocoa Jul ’18 Daily Chart

Cocoa Jul '18 Daily Chart

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Alexander Turro

Senior Market Strategist
Alex began his career with an IB at the Chicago Board of Trade after graduating with a BA/BS from Indiana University. He then went on to work for a proprietary trading software company before joining RJO Futures as a Market Strategist.
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