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Cocoa Technical Analysis - Cocoa Trading: 2022-01-12

Cocoa Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Above 2616

Buy Stop

Below 2414

Stop Loss

Dmitry Lukashev
Senior Analytical Expert
Articles 1881
IndicatorSignal
RSI Neutral
MACD Neutral
MA(200) Buy
Fractals Buy
Parabolic SAR Buy
Bollinger Bands Buy

Cocoa Chart Analysis

Cocoa Chart Analysis

Cocoa Technical Analysis

On the daily timeframe, COCOA: D1 has moved higher from the short-term upward channel. A number of technical analysis indicators have formed signals for further growth. We do not rule out a bullish move if COCOA rises above the last high: 2616. This level can be used as an entry point. The initial risk limitation is possible below the 200-day moving average line, Parabolic signal, last lower fractal, 10-month low and lower Bollinger line: 2414. After opening a pending order, 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 deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (2414) without activating the order (2616), 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

Drought risks in West Africa could drive up agricultural prices. Will the COCOA quotes rise?

Hot weather can be caused by the Harmattan trade winds. It is formed from late November to early March. West Africa produces 77% of the world's cocoa, so quotes are subject to weather conditions in the region. There are several other factors that can contribute to the rise in the price of cocoa. The government of the Ivory Coast announced a decrease in its shipments to ports from October 1, 2021 to January 2, 2022 by -5.9% to 1.11 million tons. This West African state accounts for 43% of the world's cocoa production. The International Cocoa Organization raised its forecast for global cocoa production in the 2020/2021 agricultural season by 9.3% to 5.17 million tones and the processing of cocoa beans by 4.3%. As a result, the global surplus may decrease by 7.8% compared to the previous season to 212 thousand tons. The growth in the processing of cocoa beans and, as a result, global consumption may be caused by the mitigation of the coronavirus epidemic. It is believed that a significant portion of the chocolate is purchased while traveling.

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.