Cocoa futures observed an increase in its price on Wednesday, therefore, the price of the futures rose above the total of $2100 in pursuit of some major economic news releases. As far as technical bias is concerned, it is anticipated that it may remain bearish since the price of the Cocoa futures printed a higher low in the recent upside move.
Cocoa Futures Technical Analysis
As of March 06, 2019, the futures are being traded near $2158. Since the price observed an increase, a major horizontal support level can be seen around $2208. Another support may also come across around $2191, the trend line support and then a 23.6% Fib level support is likely to prevent the price of the futures from falling below $2154 as demonstrated in the given below chart.
Coming towards the downside, an immediate resistance level can be seen around $2197, the trend line resistance level. Another resistance may also come across around $2223, the 61.8% Fib level ahead of 2264, the major horizontal resistance which is likely to prevent the price of the futures from increasing above the said level, as demonstrated in the given above chart. The technical bias shall remain bearish as long as $2223, the major horizontal resistance level remains intact.
The United States Michigan Consumer Sentiment Index News
In the United States, the figure concerning the index price of Michigan Consumer Sentiment remained 99.0 in October, as compared to 100.1 during the month before, up beating the economist expectation which was 100.4 The data is sourced from the news released by the University of Michigan, United States.
The figure represents the level of confidence of consumers concerning their willingness to spend money. Generally speaking a high reading in this regard is taken as a bullish trend for the US Dollar and vice versa.
Considering the overall price trend over the last few days, selling Cocoa futures near current levels may turn out to be a good decision over a short to medium term.