Cocoa hit our Target $26.90 next target $30.60
Target reached with Cocoa at $26.90
7>21>200 MA
Still bullish
Target 2 due to an even bigger Cup and Handle sets the next price to $30.60
But with peripherals, there are a few reasons for the spike in Cocoa prices.
People are buying chocolates!
January is typically a busy month for chocolate manufacturers as they gear up for Valentine's Day, which results in increased demand for cocoa and can lead to an increase in prices.
Speculative buying:
Some investors and traders may anticipate a rise in cocoa prices and begin to buy up large quantities of cocoa futures in anticipation of a price increase. This buying activity can drive prices up.
Production forecasts
If there are forecast of lower cocoa production and if demand is strong, prices would rise as a lack of supply will cause price to increase.
7>21>200 MA
Still bullish
Target 2 due to an even bigger Cup and Handle sets the next price to $30.60
But with peripherals, there are a few reasons for the spike in Cocoa prices.
People are buying chocolates!
January is typically a busy month for chocolate manufacturers as they gear up for Valentine's Day, which results in increased demand for cocoa and can lead to an increase in prices.
Speculative buying:
Some investors and traders may anticipate a rise in cocoa prices and begin to buy up large quantities of cocoa futures in anticipation of a price increase. This buying activity can drive prices up.
Production forecasts
If there are forecast of lower cocoa production and if demand is strong, prices would rise as a lack of supply will cause price to increase.
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
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.