Last week, Sep-22 NY cocoa failed tests of the upper Bollinger Band and resistance near $2,400, instead falling below the 20-day average but finding retracement support below $2,320. The contract tested a minor rebound back above the 20-day average earlier this week but instead fell to a three-week low on Wednesday. Support may now lie above $2,260, $2,245, and $2,200, resistance below $2,335, $2,360, $2,390, and $2,400. MACD switched from marginally bullish to neutral, while the stochastic rejected a bullish crossover and is modestly bearish.

Noncommercials longs and shorts have been nearly balanced in the last few months and most recently switched back to nominally net long.

Sep-22 London cocoa gave back most of its early-week gains on Wednesday. Support may be near £1,700 and from £1,685 to £1,680, resistance from £1,720 to £1,730 and near £1,745 and £1,765. MACD and the stochastic are nominally bearish.

NY cocoa futures & noncommercial commitments

Source: DTN
Posted by: Information Services
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