Coffee is one of the most consumed and traded commodities on earth, and it's price is about to explode!
FUNDAMENTALS:
-Despite quadrillions of currency units (DEMAND) created over the past 50 years, coffee prices are only slightly higher...this is because of the massive amount of coffee production around the world (SUPPLY) keeping a ceiling on prices. Debased fiat currencies (DEMAND) will prevent any significantly lower prices and make higher prices inevitable.
-Currency creation however is being ramped up to unprecedented levels (DEMAND) and increased government intervention around the world will hinder continued global production (SUPPLY).
-Weakness in the dollar relative to the currencies of coffee-producing nations (DEMAND) will bid up prices.
-Rising energy prices will increase costs (SUPPLY), pushing prices higher.
-A period of record cold temperatures linked to the Grand Solar Minimum will lead to slowing and potentially shrinking production (SUPPLY)
TECHNICALS:
-The 10$ price range of 115-125$ per contract with the most volume has been successfully absorbed.
-A massive amount of volume was traded at 50-75% lower prices from the 2011 peak, at the lowest levels in over a decade.
-A price-volume divergence has occurred, as during the correction from the 2011 peak volume continually increased.
-The corrective descending wedge from the 2011 peak has been broken and retested by bullish reversal candlestick patterns.
-Volatility has continually decreased for over two decades as prices have remained subdued, therefore an inevitable increase in volatility will likely occur during/after a significant increase in prices.
FUNDAMENTALS:
-Despite quadrillions of currency units (DEMAND) created over the past 50 years, coffee prices are only slightly higher...this is because of the massive amount of coffee production around the world (SUPPLY) keeping a ceiling on prices. Debased fiat currencies (DEMAND) will prevent any significantly lower prices and make higher prices inevitable.
-Currency creation however is being ramped up to unprecedented levels (DEMAND) and increased government intervention around the world will hinder continued global production (SUPPLY).
-Weakness in the dollar relative to the currencies of coffee-producing nations (DEMAND) will bid up prices.
-Rising energy prices will increase costs (SUPPLY), pushing prices higher.
-A period of record cold temperatures linked to the Grand Solar Minimum will lead to slowing and potentially shrinking production (SUPPLY)
TECHNICALS:
-The 10$ price range of 115-125$ per contract with the most volume has been successfully absorbed.
-A massive amount of volume was traded at 50-75% lower prices from the 2011 peak, at the lowest levels in over a decade.
-A price-volume divergence has occurred, as during the correction from the 2011 peak volume continually increased.
-The corrective descending wedge from the 2011 peak has been broken and retested by bullish reversal candlestick patterns.
-Volatility has continually decreased for over two decades as prices have remained subdued, therefore an inevitable increase in volatility will likely occur during/after a significant increase in prices.