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Coffee Prices Pressured By Surplus and Weakened Demand

Arabica Coffee Settles At A 3-1/4 Month Low On Prospects For Bumper Brazil Coffee Crop

cmdtyNewswires - Mon Feb 3, 2:05PM CST

Read the full article here

Starbucks and McDonald's close a string of stores in mainland China to further decrease demand for coffee and put even more pressure on the already-challenged coffee prices.

Coffee futures have been falling in response to larger-than-anticipated supply. But what do the technical indicators say?

I use a 5-day and 21-day commodity channel index. March Coffee is oversold on the daily chart shown below.

My indicators expect a short term low in middle of this week. Look for a reversal candlestick as a signal.  The swing trade low prediction is for a week or so. My indicators are only for short term predictions averaging about five days.

Almost all short term trends end with a candlestick reversal pattern. But beware... those reversal candlestick patterns are usually just a pause in the trend. You need to use candlesticks with other indicators.



Chart is courtesy of barchart.com

Many profits and much success,

Dave

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Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

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Risk Disclosure:

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and onlythose with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure:

Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.