For investors seeking momentum, iPath Bloomberg Cocoa Subindex Total Return ETN is probably on radar. The fund just hit a 52-week high and is up 55.1% from its 52-week low price of $23.02/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

NIB in Focus

The underlying Bloomberg Cocoa Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on cocoa. The product charges 70 bps in annual fees.

Why the Move?

Cocoa futures are hovering around a 7-1/2-year high amid supply concerns. Latest data showed cocoa arrivals at ports in top grower Ivory Coast had reached 2.104 million tonnes by June 4 since the start of the season on October 1, down 4.5% from the same period last season, per tradingeconomics. Ongoing above-average rains in most of Ivory Coast's main cocoa regions stoked fears of flooding and disease, which could damage the April-to-September mid-crop.

More Gains Ahead?

Currently, NIB has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance given a positive weighted alpha of 43.74.