COCOA breaks below Wednesday's low
Cocoa (COCOA) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, COCOA ended Thursday at 2775.0 losing $21.0 (-0.75%). Closing below Wednesday's low at 2789.0, the market confirmed its breakout through the previous session low after trading up to $27.0 below it intraday.
Daily Candlestick Chart (COCOA as at Jan 23, 2020):
Thursday's trading range has been $36.0 (1.29%), that's far below the last trading month's daily average range of $61.4. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for COCOA.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cocoa. Out of 509 times, COCOA closed higher 50.10% of the time on the next trading day after the market condition occurred.
With three out of the other five Consumer Commodity Markets closing lower today, the ones that stand out on the negative side are ORANGE losing -2.13% and COTTON closing -1.53% lower. On the flipside the best performer has been COFFEE closing 1.02% higher. Read more