December Coffee Violates SupportPosted 10/24/2017 10:07AM CT |
December coffee has now violated a major support area twice in the last two weeks. The low of 12430 from October 5 should have been enough to support December coffee, but this recent selloff says otherwise. Likely, it’s the continued wet weather in Brazil that has kept many bulls from entering the market, or short sellers from covering. Coffee prices want to move higher, but the simple lack of any news that would otherwise push prices higher is currently winning this battle. In addition, the continued positive price action from the US dollar, which has been in place since early September, will also keep coffee prices in check. For now, the aforementioned 12430 level should pose major resistance for coffee prices.
Look for December coffee prices to continue their downward spiral to at least the 120 level, with the 11910 low from June 22 acting as strong support.
Dec ’17 Coffee Daily Chart