RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Mar ’20 coffee futures jump up this morning and have seen nearly 2% gains at the time of writing. There looks to be firm support at about the 110’00 price level and the market is likely to reject prices below it without any fresh bearish developments. Having come around the 200-day moving average it’s no surprise to finally see a bounce after such heavy losses since the mid-December highs. It seems all the bearish news may be priced into this market currently. I think there is a possibility prices can jump up back up to about 118’00 on a short covering rally if coffee futures can show a positive reversal on the weekly charts (a very bullish signal), and any bullish developments could spark more significant gains. My analysis suggests there is a bullish opportunity in the near term for more aggressive bulls, but as I’ve said before, coffee futures can be fiercely loyal to the trend once established and the trend is still bearish…for now.

Eric Scoles

Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.