By IFCMarkets
Technical setup bullish for #C-COCOA
Current technical setup is bullish for cocoa after a steep decline in a period of one month. Cocoa price fell over 27% below the February high to a low of $2189 per ton in mid-March. It is rebounding currently but a few factors related to coronavirus shutdowns weigh on it. Many companies in cocoa and chocolate industry are shutting down production lines to protect employees and manage significant business disruptions in their supply chains as they face financial uncertainty and economic risks, according to World Cocoa Foundation. This is a downside risk for cocoa demand. However the infection can have a negative impact on cocoa supply as cocoa beans inventories could accumulate with processing plants reducing or stopping production. This is an upside risk for cocoa.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(50) | Sell | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| Fibonacci | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 2415 |
| Stop loss | Below 2220 |
Market Analysis provided by IFCMarkets
