In my last article, I made mention that long liquidation was taking place, and we should begin to see some support being offered at the 113 level in March coffee prices. The fact still remains that tightening supplies are still on the horizon, which initially sparked this most recent, strong bull run over the past month. At the same time, we continue to make new highs in U.S. stocks, which should equate to steady demand for coffee. I am still very much bullish due to the fundamentals of March coffee.

Our friends at The Hightower Group shared that “coffee has a chance of seeing upside follow-through buying during today’s price action.” From a technical perspective, we have violated the 50-day moving average, and the 113 level is critical for holding support.

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.