Cocoa marks possibly the biggest daily spike in history📈
Cocoa is rebounding by almost 14% today, which is probably the biggest daily spike ever. Of course, the market closes at 6:30 pm GMT, so some of the movement may be reduced. Previously, such strong increases took place in 1990 and 1993. The price of cocoa is rebounding today from the vicinity of $7500 to the level of $8500 per ton and is approaching the resistance set by the retracement of 38.2 of the entire upward wave from this year. Such strong market movements are associated with very low liquidity. Most of the large funds have “fled” the market, fearing the inability to execute supply contracts.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appSource: xStation5
Daily changes on cocoa. Previously such strong daily increases were recorded in the 1990s. Source: Bloomberg Finance LP, XTB
Stocks continue to fall among traders, showing that the market is still tight. Source: Bloomberg Finance LP, XTB
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
