Fundamentally, the overall outlook consensus for May coffee is continued weak demand with a sizeable near and long-term supply situation. Key growing regions of Vietnam have been getting plenty of rain and favorable weather, which continues to keep pressure on May coffee prices.
The key support level of 12725 from November 1 was violated on November 20. Subsequently, May coffee prices corrected back up to the top of what had been a fairly well-defined and reliable range (134-130), but the violation of the aforementioned 12725 critical support area cannot be overlooked. This looks like a good opportunity to range trade May coffee from the 126 level, back up to the 132 level in the near-term.
Coffee May ’18 Daily Chart