Cocoa - Chocolate is DIPPING (literally)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.
