Hello Market Watchers 👀
I bring today an update on your favorite commodity (mine actually)... 🍫
The weekly timeframe from a multi-year perspective is what's on the cover and one thing is clear - cocoa has never increased so much as it during May23' to Dec24'.
Sure inflation brought on by covid has a role to play. But even so, factoring in the amount of +509%? That is way out.
We could likely see this kind of stair step down movement on cocoa, since it has been following the logic of: "previous support = new resistance".
Either way what this tells me is that cocoa has been running overly hot for too long... and it's time for a cooldown. Prices will likely never return to pre-covid levels, unless there is unfortunate weather or other supply chain issues.
Ultimately, a return back to the $5,600 zone would be a reasonable market correction for such a large increase.
I bring today an update on your favorite commodity (mine actually)... 🍫
The weekly timeframe from a multi-year perspective is what's on the cover and one thing is clear - cocoa has never increased so much as it during May23' to Dec24'.
Sure inflation brought on by covid has a role to play. But even so, factoring in the amount of +509%? That is way out.
We could likely see this kind of stair step down movement on cocoa, since it has been following the logic of: "previous support = new resistance".
Either way what this tells me is that cocoa has been running overly hot for too long... and it's time for a cooldown. Prices will likely never return to pre-covid levels, unless there is unfortunate weather or other supply chain issues.
Ultimately, a return back to the $5,600 zone would be a reasonable market correction for such a large increase.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.