Is it the end of the Cocoa future's rally? After five days of gains, it is down by 0.8% today

The Cocoa future is down to $3,210 per metric tonne, after ending yesterday at $3,236. Overall, a 0.8% loss or $26 today.

United States Fed Chair Powell testimony is next today at 14:00 UTC.

Amid the market gloom, United States Building Permits (May) came out at 1.49 million, while a consensus of analysts was expecting 1.43 million. Data for United States Housing Starts published yesterday at 12:30 UTC came out at 21.7%, beating projections of -0.8% and showing improvement over the preceding figure of -2.9%. United States Housing Starts (May) released yesterday at 12:30 UTC with a figure of 1.63 million, while the previous figure was 1.34 million.

Cocoa's upper Bollinger Band® is at $3,285 which indicates a further downward move may follow.

Following today's unexpected losses, extensive multifactorial technical analysis forecasts Cocoa to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the Cocoa is expected to attract significant bearish sentiment in the coming days.

In the meantime, negative performances are also seen in other Softs as Coffee is down to $176.35, losing $4.4, after closing at $180.75 in the preceding trading session.

Positive performances can be seen by looking at other Softs markets as having closed the previous session at $82.05, Cotton is up 1.17% today to currently trade at around $83.

With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as projections for United States Crude Oil Inventories are set for a continuation of decline with 1.87 million while previous data was 7.92 million; data will be released tomorrow at 15:00 UTC.

Some optimism can drawn from the fact that United States Initial Jobless Claims is projected to outperform its last figure with 260,000, having previously been at 262,000. The figure will be published tomorrow at 12:30 UTC.

Furthermore, United States Existing Home Sales (May) scheduled to come out tomorrow at 14:00 UTC.

The commodity has been trending positively for about a month. The past 3 months have been positive for CME Cocoa as it added 20.84% compared to its 3-month low of $2,211.5.