NIB’s recent price retrenchment has taken the ETN below its 20-, 50- and 200-day moving averages. The ETN now resides 6.3% below its 200-day line, a bearish sign, and further declines could take NIB to its March low below $28.
Investors looking for a way to profit from falling cocoa futures can consider the obvious, that being Hershey (NYSE: HSY). Shares of Hershey have surged almost 22% this year while NIB has fallen more than 3%. Hershey can be accessed via ETFs through the PowerShares Dynamic Food & Beverage Portfolio (NYSEArca: PBJ), among others. The stock is that ETF’s third-largest holding with a weight of 4.9%.
iPath Dow Jones-UBS Cocoa Total Return Sub-Index ETN
ETF Trends editorial team contributed to this article.