March Coffee Violates Support

November 21, 2017 9:00AM CST

A steady, continued violation of solid support levels in March coffee proves that the news required to boost bullish perspective is quite thin. It has been reported by The Hightower Group that “precipitation is likely to improve prospects for Brazil’s 2018/19 production”. This supply news has the bears taking full control over the price of March coffee.  

Solid support looked formidable at 12800, but was dealt with swiftly in October, and has seen quite the follow through selloff into November. It is likely that March coffee will looks to test the next area of critical support, which will be 12268 from June 22. If this area is violated, we will likely plunge in to the abyss for the foreseeable future. Collecting premium for call options should be considered on a rally back to 130.

 

Mar '18 Coffee Daily Chart

Mar '18 Coffee Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.