Coffee Sits Comfortably in Consolidation RangePosted 01/31/2018 9:58AM CT |
Consolidation continues to weigh heavy on March coffee prices, as traders struggle with fundamentals that force nothing but major sideways price action. It’s the same old coffee story, an extremely large upcoming supply weighed against the promise of a potentially unfavorable weather outlook ahead. In the meantime, a falling US dollar still hasn’t been enough to swing inverse coffee prices above key resistance levels, nor force them below key support levels. All eyes will be on any break that takes place above the upside consolidation range resistance of 13142, or the downside violation of critical support at 11832. Coffee prices appear to be fairly comfortable in this range, as we’ve been swing-bound here since December of last year. While we all wait around for a definitive break in any one direction, expect a rally up to the 128 level, followed by a prompt return back to the 122 level. These swings are worthwhile enough for traders to participate and find some good volatility and opportunities, as long as you know how to play them.
Coffee Mar ’18 Daily Chart