December cocoa traded at a new contract low and is attempting to rebound off that. With a close below the 9-day moving average the short-term still looks negative. The cocoa futures market remains oversold with a RSI under 20. Areas of resistance are around 2728 and 2771 with support at 2632 and 2580. Global economic issues as well as a weaker British pound were major players in the steep decline of cocoa. The large supplies coming out of West Africa limit the potential of a big bounce back. Technically prices could find some support today but any rally we may see will be held down by the fundamentals that have controlled this market. December ’11 opened at 2700 and was trading between 2709 and 2613 as of 11 a.m. cst.
Daily Chart, December'11 Cocoa (ICCZ1)
Series 3 & 34 Licensed
Senior Commodities Broker
Peter's interest in trading began during a college internship with Bunge North America on the floor of the Chicago Board of Trade, where he assisted commodities traders and performed market research and analysis. Upon earning a B.A. in Economics from the University of Iowa, Peter served as an Analyst, Transaction Manager and Team Lead in the Global Trust Divisions for LaSalle Bank and Bank of America, where he managed transaction activity in multi-million dollar client fixed income and asset-bac.... Read More