The price of cocoa is rebounding slightly today after a negative opening, but a continued decline later in the session cannot be ruled out, especially after news of expected rains in West African countries. Moreover, the main harvest season is set to begin next month.
This week, the price of cocoa is bouncing off the downward trend line and the area around $8,000 per ton. It's worth noting that the pattern from the previous two rollovers is repeating, where the price increased by about $1,700-2,000 per ton after the rollover, followed by a more significant pullback. The potential target is, of course, the area around $7,000, as the price dropped in the previous two instances. On the other hand, if the pattern were to repeat on a similar scale, a pullback to the $5,500-6,000 per ton range cannot be excluded.
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Source: xStation5
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