Rebound in CocoaPosted 08/23/2019 7:36AM CT |
Cocoa’s main stories have been on repeat this year – supply/demand, global uncertainty, and grinding data, have created volatility in the futures. This recent sell-off, mainly from the lack of demand, Asian demand, due to the global trade tensions have finally caused cocoa to reach oversold levels. A recovery should be on the way. Global equities have comeback slightly, currencies have given softs a little push higher as well. Grinding data is coming in mixed. If resistance levels can be broken, 2280 – look for a move above 2300. The recent equity trade in the U.S. markets, as well as overseas could turn any market around as we saw over the past few weeks. Technically, look at moving averages for guidance in the short-term.