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.
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
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