CC technical analysis: Price faces strong resistance amid sustained pullback

Traders Union
All News
Commodities
Cocoa drops 3.16% today to $5,843

Highlights

CC/USD fell 3.16% to $5,843, opening with a gap and currently trading near today’s low.
The asset trades below short- and medium-term moving averages, with all major momentum indicators indicating ongoing selling pressure.
Short-term range is projected at $5,749 to $5,955, with a 32% probability of an upward move and stronger downside risk.

Bearish momentum builds as multiple indicators flag oversold conditions

On the technical front, CC is trading below both the MA-20 and MA-50 on the H1 timeframe, signaling persistent selling pressure in the short and medium term. Price remains well above the MA-200 on the daily chart, with the Ichimoku Kijun at $5,991 marking immediate resistance. Bearish momentum is confirmed by MACD, while ADX registers a neutral reading. RSI stands at 43.24. Stoch RSI, CCI, and Bull/Bear Power indicate oversold conditions alongside continued seller dominance intraday. The Awesome Oscillator is also in a sell setup, further supporting the downside bias.

Sideways drift expected as resistance and downside risks converge

In the near term, CC is expected to trade within a range of $5,749 to $5,955 over the next 2 trading days. The probability of an upward move stands at 32%, while the conditions currently favor further downside. The baseline scenario is for cocoa to remain in a sideways corridor unless it breaks above the Kijun and local resistance, in which case a bullish scenario may unfold. Alternatively, a bearish scenario would be triggered if price breaches the lower bound of the projected range.

Anton Kharitonov, expert at Traders Union, sees the technical picture for cocoa as weak in the short and medium term. Persistent selling pressure dominates, with multiple indicators confirming bearish momentum. Key resistance remains intact at $5,991, and the projected range of $5,749 to $5,955 limits immediate upside. "My base case is sideways-to-lower unless bulls reclaim the Kijun — for now, sellers control the pace."

Earlier, analysts noted that cocoa prices were likely to consolidate amid heightened volatility as supply concerns remained a key driver. The latest downside follow-through and breach below short- and medium-term averages signals a bearish shift, making the lower bound of $5,749 a critical level for traders to monitor in the coming days.

Source of Data: CC Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.