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Cocoa Technical Analysis - Cocoa Trading: 2022-02-03
Cocoa Technical Analysis Summary
Above 2674
Buy Stop
Below 2404
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| MA(200) | Buy |
| Fractals | Neutral |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
Cocoa Chart Analysis
Cocoa Technical Analysis
On the daily timeframe, COCOA: D1 is moving towards the upper boundary of the long-term neutral range. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if COCOA: D1 rises above the latest high: 2674. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, the last lower fractal and the lower Bollinger line: 2404. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (2404) without activating the order (2674), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities - Cocoa
There is an increase in demand for chocolate in the world. Will the COCOA quotes continue to rise?
According to IRI (Information Resources, Inc.), U.S. retail chocolate sales are up 5% year-on-year in Q4 2021. The European Cocoa Association announced an increase in the processing of cocoa beans in Europe in the 4th quarter of 2021 by 6.3% y/y to 365.83 thousand tons. Cocoa processing for the whole of last year increased in Europe by 6.1% y/y and amounted to 1.46 million tons. This is the highest since 1999. Cocoa processing in Asia increased by 6.3% YoY in Q4 2021 to 231.3 kt. As usual, quotes are strongly affected by the weather in West Africa, as 77% of the world's crop is harvested there. There is currently a lack of rainfall in the region, which could further boost cocoa prices, especially if a full drought begins.
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