Arabica Coffee Settles At A 3-1/4 Month Low On Prospects For Bumper Brazil Coffee Crop
cmdtyNewswires - Mon Feb 3, 2:05PM CST
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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,
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