March Coffee Violates SupportPosted 11/21/2017 9:00AM CT |
A steady, continued violation of solid support levels in March coffee proves that the news required to boost bullish perspective is quite thin. It has been reported by The Hightower Group that “precipitation is likely to improve prospects for Brazil’s 2018/19 production”. This supply news has the bears taking full control over the price of March coffee.
Solid support looked formidable at 12800, but was dealt with swiftly in October, and has seen quite the follow through selloff into November. It is likely that March coffee will looks to test the next area of critical support, which will be 12268 from June 22. If this area is violated, we will likely plunge in to the abyss for the foreseeable future. Collecting premium for call options should be considered on a rally back to 130.
Mar ’18 Coffee Daily Chart