Softs

March Coffee Violates Support

Posted 11/21/2017 9:00AM CTAdam Tuiaana

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

Adam Tuiaana

Adam grew up in Chicago and was always fascinated by the fast-paced action found in the futures market hub there. He began participating in the financial markets by trading stocks in 1997 and began his career as a trading consultant with RJO Futures in March of 2009. At RJO, he specializes in risk management and disciplined trading plans, and is focused on educating clients with one-on-one consulting and training. Adam believes the best approach to trading is to take a measured and objective approach and let the markets guide your decisions.