Trading commodity futures and options involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources.
Cocoa futures declined today (12/14) along with sugar #11 and most of the softs.
Today's move lower gives me a sell signal on the daily chart for March cocoa futures. This is only the second sell signal cocoa has issued on the daily chart since the trend changed to the downside at the beginning of November. Today's sell signal comes after a very nice two-day retracement. The trend has been down on the weekly chart for quite some time, with its most recent weekly chart sell signal coming five weeks ago. The trend is down on the monthly chart.
The March contract of sugar #11 futures also showed a sell signal on the daily chart today. This is the fifth sell signal sugar has given on the daily chart since the trend changed to the downside around November 1st. Today's sell signal comes after two weeks of sideways movement in apparent consolidation. This session's low also took out cocoa's most recent low (put in on 11/25) and cocoa is showing a sell signal so far this week on the weekly chart. The trend on the monthly chart also looks to change to the downside.
In addition both cotton #2 and coffee futures (both March contracts) gave a sell signal on their respective daily charts today.
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Cocoa futures daily chart
Sugar #11 futures daily chart
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Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed.
