This is good for 20.00, strait to 110.00!
The Real has stayed suppressed, at least until now, nevertheless, this is a major short here.
Here is the Weekly;
Chances are that this is headed much much lower from here.
KC=F has been in a vicious bear market just like many agricultural commodities. There is a down trend line since May, 2011. It is getting close to the apex of the symmetrical triangle as well. If it breaks up, it will be pretty bullish and it may be the start of new bull market in Coffee.
Not much data on this company because it has only been publically traded for 3 days but this company will be huge. They make disposable coffee pods that only take 35 days to decompose! This is a huge play compared to current plastic coffee pods. Betting on the sustainability!
Coffee after a 3 week structure and battle seems to be making a break towards the Fib 0.382.
The higher time frames still point down.
The ADX indicator shows uptrend but no strength yet (it usually has a delay on that).
The COT of Sep 29 shows a lot of long orders closed (-3745) and more short open (+3065) with net long positions to 54931 compared to 61741 of...
Coffee reached our target at 120. However, there is still no signal the decline is done and we want to follow the trend. The support is broken and it makes me believe there is a big chance we can see a retest of important support/resistance near 104. So, if you still hold your shorts, consider adding trailing stops and let the good time roll.
Coffee reached an important zone of confluence:
1. We have a strong structure resistance on the left
2. Completed harmonic abcd pattern
3. Fib.extension and retracement confluence.
4. Bearish sentiment from the beginning of the year
The price may drop at least to 114.0 level.
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After the strong bullish speculation on sugar finally ended, with the price is returning to more realistic values, my attention shifted to coffee.
Coffee, which was also heavily speculated upwards, reaching an absurd price of $ 140, has returned to the $ 100 area and then rebounded. At the end of the bounce, as you can see from the chart below, a distribution...
Short bias included with the lovely world of seasonality. Enjoy the trade guys and gals. This is definitely a 2-4 month trade. Put on a spread for minor span margin costs. May need to have the proper broker for this.
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Coffee futures continued to drop, now trading on a strong support area ($115). The price has recently soared ($142) due to Brazil's supply difficulties. On the other hand, I'm expecting Coffe demand to be stable or even grow, supporting the rise of Coffee prices.
Disclosure: My ideas...