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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

Many profits and much success,


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