Technical Analysis #C-COCOA : 2021-06-29

IFC Markets

Master Trader
Oct 31, 2012
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Recommendation for Cocoa:Sell​

Sell Stop : Below 2337

Stop Loss : Above 2413



RSI : Neutral

MACD : Buy

Donchian Channel : Sell

MA(200) : Sell

Fractals : Sell

Parabolic SAR : Sell





Chart Analysis​

IFC Markets Tech Analysis

The #C-COCOA technical analysis of the price chart on daily timeframe shows #C-COCOA,Daily is retreating under the 200-period moving average MA(200) which is declining itself. We believe the bearish momentum will continue after the price breaches below the lower Donchian boundary at 2337. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 2413. 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 (2413) without reaching the order (2337) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Fundamental Analysis​

Ghana’s record crop is weighing on price. Will the [URL deleted] cocoa price slide continue?

Ghana farmers harvested 965,493 metric tons by June 3, compared with a target of 900,000 tons for the whole crop year that ends in September, according to Bloomberg. It is the biggest cocoa harvest in a decade for the world’s second largest cocoa producer. This places Ghana easily within the reach of the 1 million-ton mark, which was last attained in 2010-11. Expectations of higher cocoa supplies is bearish for cocoa prices.
 
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