Tightening stocks are taking their toll on March coffee prices, prompting continued aggressive buying along the way. On my last article, I wrote “A break above the critical 119 resistance level will likely spark continued aggressive buying over the next couple of weeks. A break above the 120 level will begin to make a strong case for a reversal in the trend to the upside. It may be a great time for bulls to jump in again once the pullback reaches 114 support level.” With the exception of some run of the mill profit taking, nothing in the foreseeable future has changed that could prompt coffee to sell off from this point.
From a technical perspective, we have cleared several resistance areas mentioned in my last article, and the 130 level is not critical for holding support. With momentum and volume at high levels, the bull camp should continue to be in control until outside forces prompt otherwise.