Bullish CME Cocoa runs out of steam at $3,174; currently at $3,166 per metric tonne

After closing the previous trading day at $3,137, the Cocoa future is up to $3,166 per metric tonne, which makes for a move of 0.92%/$29 today.

On the flip side, following a previous reading of 233,000, Initial Jobless Claims in United States released yesterday at 12:30 UTC fell short of the 235,000 figure expected by analysts with an actual reading of 261,000.

At the same time, United States Fed's Balance Sheet released yesterday at 20:30 UTC with a figure of 8.39 trillion, while the previous figure was 8.39 trillion. United States Reserve Balances with Federal Reserve Banks released yesterday at 20:30 UTC with a figure of 3.31 trillion, while the previous figure was 3.21 trillion.

With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. According to momentum evaluation, according to technical analysis of the Cocoa future's Relative Strength Index (RSI), the market is currently overbought. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at $3,137, thereby suggesting that the Cocoa future is becoming overvalued.

Overall, while the Cocoa future has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.

The commodity has been trending positively for about a month. Having set a significant high of $3,156 a day ago, the Cocoa future is trading 0.6% lower.