Thursday, November 17, 2011

Coffee futures executed a breakout from a broad Rectangle chart pattern

Coffee futures executed a breakout from a broad Rectangle chart pattern

Daily Commodities Update: Technical

Coffee futures executed a breakout from a broad Rectangle chart pattern

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Coffee futures executed a breakout from a broad Rectangle chart pattern identified by Autochartist this week. Follow-through has so far been muted, allowing time to position at the current levels in anticipation of a continuation towards the target.

Commodities

The pattern scores 8 bars in the Clarity and Initial Trend categories, with an overall Quality ranking of 6 bars. Key Level supports have not yet established but are likely to do so as the top of the rectangle becomes horizontal support. The breakout above $2.42 per pound occurred on a modest momentum reading of 4 bars, emphasized by the short term pullback now underway.

Strength coming into the market at the current price will be required to confirm the breakout. A move higher towards $2.43 per pound or better during Wednesday’s session would lend weight to the forecast and could encourage momentum buying. The projected price target generated by Autochartist calls for a minimum swing high near $2.45 per pound, with an upper end as high as $250.60 also possible. This would put the market back on bullish footing and suggest the recent decline to below $2.30 per pound was a temporary retracement in the long term bull market.

Wednesday, November 9, 2011

Is Coffee ready to Perk Up?

Inside Futures: Relevant trading-focused information authored by key players in the futures, options and forex industries

Is Coffee ready to Perk Up?



Don't Forget Your Morning Cup of Joe
With all of the insanity out there today regarding the European debt crisis, MF Global and the great rip-off, US election wackiness, and of course the "occupy protestors", it is very easy to lose sight of opportunities that could be making you money. Of course the one thing most of you do is down at least one cup of morning coffee.
Last week Dec Coffee opened at 233.00 hit a weekly low of 223.65 and closed the week at 230.20. You can see on the daily chart below that 220 is the current price floor in this market. You can also see the last strong trend (down) ended a few weeks back and now ADX is at 19 showing no strength of trend. Weak trending markets confirm a range bound market, and you can see the bottom of the current range at 220. The top of the range looks to be 240 on up to 250. MACD is just over the signal line showing no momentum right now, and Stochastics is correcting from oversold territory, which is to be expected in a weak trending market.