FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
62,101,154Confirmed
1,451,592Deaths
42,890,782Recovered
Fetching Location Data…
Advertisement
Advertisement
Michael Seery
Aromatic cocoa, powder and food dessert background

If you are long a futures contract I would place the stop loss under yesterday’s low of 2594 as an exit strategy as the chart structure is outstanding at the current time, however for the bullish momentum to continue prices have to break November 18th high of 2694 in my opinion. Last Friday’s Commitment of Traders data (COT) showed that funds boosted their long cocoa positions by 15,528 contracts in the week ended Nov 19th to a 5-year high of 60,818 contracts which could provide fuel for long liquidation pressure.

Fundamentally speaking reduced output from Ghana, the world’s 2nd largest cocoa producer is supportive for cocoa prices after the Ghana Cocoa Board on Sep 13th cut its Ghana 2019/20 cocoa production estimate to a 3-year low of 800,000 MT from a previous estimate of 950,000 due to an outbreak of the swollen shoot cocoa disease that has affected about 16% of Ghana’s cocoa crop.

TREND: HIGHER

CHART STRUCTURE: EXCELLENT

VOLATILITY: AVERAGE

This article was written by Michael Seery (CTA—COMMODITY TRADING ADVISOR)  www.seeryfutures.com

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US