While coffee has only had one positive daily result so far this week, it has been able to avoid a long liquidation washout from this years commodity index fund rebalancing. With the market on track for a positive weekly reversal from Monday’s 7-week low, coffee can lift further above the 50-day MA. Global risk sentiment helped to fuel long liquidation, while high levels of new Covid cases in many regions of the world are likely to dampen restaurant and retail consumption.
Momentum studies are trending higher, which should support a move higher if resistance is broken. Support comes in today at 229.50 and 226.30 while resistance comes in at 233.90 and 235.20 for March coffee.