COCOA - We had a good drop, but demand is still high,so we go upHi guys, recently had a rollecoaster with Cocoa , but eventually the price went back and stabilized, now I am coming back to it hence , I see that there has been an ascending channel formulated. The overall technical overview is that the asset is indeed overbought, but at this current stage the fundamentals are out-weighting the technicals, bringing up the prices.
From a fundamental perspective, currently for yet another year we have had weather problems which causes the nearby crop of Cocoa in the Ivory coast which is the biggest exporter will be limited in spring as analysts are predicting. Additionally the weather circumstances have lead to an almost two year hiatus where we have problems with the supply of Cocoa, while the demand remains to be high.
‘Like coffee, chocolate is one of those things consumers are reluctant to give up. Poster items for inelastic demand.’
Entry: 11,203
Target 1: 12,404
Target 2: 13,036
Target 3: 14,026
As always my friends happy trading!
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