March Coffee Questionable Support

January 5, 2017 6:20AM CST

The weakness in the US dollar has put tremendous pressure, and has essentially pushed the price of March coffee back to December highs. There are also weather related concerns, as the Hightower Group reported, “the market is becoming increasingly concerned with Brazilian dryness over the next ten days”, which is adding some continued support to coffee prices.

Technically, the area to monitor will be the last major corrective high of 14525. This level should provide some formidable resistance to coffee prices. Look for some consolidation and long liquidation to take place over the next few trading sessions, followed by a continuation of the prior downtrend. Bearish traders who wish to enter with futures contracts should risk above the 14525 area.

There are several strategies that traders can apply in this situation.

Call or email for specific strategies.

Coffee Daily

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