After rallying over recent weeks, most-active Dec-22 NY failed to break retracement and psychological support near $2,400 last week. The contract tested that level at the start of this week but fell in the first three sessions, closing Wednesday at a nine-session low of $2,318, below its 20-day moving average. Support may be from $2,310 to $2,300 and near $2,280 and $2,250, resistance near $2,365, $2,400, $2,425, $2,440, and $2,450. RSI is neutral; MACD is now only marginally bullish and could follow the stochastic’s recent bearish crossover.

Nearby Dec-22 London cocoa failed to hold above £2,000, falling in the last three sessions to psychological support near £1,950, a six-session low and just above retracement support below £1,945. Further support may be below £1,920 and £1,905, resistance from £2,000 to £2,010. RSI is strongly bearish, MACD grew less bullish, and the stochastic saw a bearish crossover.

A six-session rebound for the dollar index to an 11-day high is weighing on NY cocoa futures. The pound sterling rebounded on Wednesday, ending a five-session slide. Weather is reported to have improved in West Africa, adding to pressure on cocoa. The market will be waiting on the publication of Q3 grind figures in coming weeks.

NY cocoa noncommercial commitments

Source: CFTC, DTN, McKeany-Flavell
Posted by: Information Services
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