Bullish phase under threat as CME Cocoa stays range-bound

Stable at $3,071 and still trending upwards, Friday's session put the brakes on the ongoing uptrend — Cocoa moves 0.1% to close at $3,071 per metric tonne Friday.

Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. According to asset volatility analysis, CME Cocoa's upper Bollinger Band® is at $3,073.21, suggesting that a downward move may follow.

Notwithstanding CME Cocoa's appreciation in recent days, the technical outlook suggests its bullish run is now fading.

Meanwhile, mixed performances are seen in other Softs as after ending Friday's session at $192, Coffee lost $1.3 and is trading around $190.7.

CME Cocoa hit a significant low of $2,211.5 around 7 months ago, but has since recovered 38.73%.