Dry weather conditions in West Africa have helped the cocoa exchange traded note enjoy a sweet February.
The Path Bloomberg Cocoa TR Sub-Index ETN (NYSEArca: NIB) has advanced 11.1% since the late January lows.
The overall trend for price in cocoa seems to be bullish. Price is currently making a pullback to the support zone between 2657 and 2608 after initially breaking off of the previous high. There seems to be confluences between the 50 EMA and FIBO retracement levels within the zone. The RSI and MACD are above the centreline.
From the chart overview we could see that the overall trend for price is bullish. Price has been reacting to the support zone between 1.70961 and 1.70495 not having the right momentum to push. We could see that price is also retesting the 50 EMA which adds to the confluence of a possible price continuation to the upside. The RSI and MACD are within the centreline.
DOW JONES INDUSTRIAL
Stocks on Wall Street and in Europe rebounded on Tuesday while oil prices fell after Russia indicated it was withdrawing some troops from exercises near Ukraine and President Vladimir Putin said he saw room for further discussion with the West. President Joe Biden later said a Russian attack on Ukraine remained possible and that the United States would defend every inch of NATO territory.
From the overview of price in US30 4h timeframe we could see that price is in bearish trend. Price seems to have made a pullback to the support zone between 35011 and 34814 which is in confluence with the 50 EMA. We could also see that the RSI and MACD are below the centreline which adds to the confluence of price to continue in it bearish momentum.