Jul-23 NY cocoa rebounded by $77 May 19—the largest one-day gain in this contract’s history—to reach a fresh high of $3,068, breaking prior resistance around $3,025 and $3,050 and the upper Bollinger Band near $3,056. RSI is neutral still at 60.8 percent; MACD and the stochastic are nominally bearish, though the latter is near an overbought signal. The dollar index rebounded over the last week, closing May 18 at a two-month high. 

The Sep-23 NY cocoa contract also rebounded strongly May 19, closing at $3,074, above prior resistance near $3,050 and the upper Bollinger Band near $3,067. 

For London cocoa, the most-active Jul-23 contract rallied from May 16 through May 19, closing the week at £2,398, breaking multiple technical resistance levels to reach a seven-year high. RSI is strongly bearish at 68.8 percent, MACD is strongly bullish, and the stochastic is modestly bullish while signaling an overbought signal. The pound settled May 18 at a one-month low vs. the dollar, helping fuel the rally for London cocoa. 

The full version of this commentary appeared on our IQ platform May 19, 2023. Further information, statistics, and pricing for the cocoa market are available to IQ subscribers. Learn more about becoming a subscriber. 

Source: 123rf.com
Posted by: Information Services
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