July cocoa futures on the New York Board of Trade Tuesday saw a bullish upside “breakout” from a trading range defined by what was solid technical resistance at last week’s high of $1,545, and by solid technical support at last week’s low of $1,497. Prices Tuesday hit a fresh three-month high of $1,565 a ton. For the cocoa bulls to gain better upside technical momentum, they will have to produce a close above the February high of $1,590 in July cocoa.
The cocoa bulls can also argue that prices are in a four-week-old price uptrend on the daily bar chart, from the April 13 low of $1,434 a ton. A close back below Tuesday’s low of $1,520 a ton would provide the bears some fresh near-term downside technical momentum.
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