Courtesy of Chris Kimble.
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Coffee hasn’t been perking well over the past 2-years, as it has declined nearly 40%.
This sizeable decline has it testing the 2007, 2008 and 2013 lows, where rallies happened to get started. The current price is also testing the 23% Fibonacci retracement level at (1).
In the mid-1990’s when Coffee fell sharply and hit its 23% retracement level, a strong rally took place. Coffee is now testing the 1995 support/23% level currently as well at (1). Understandably the decline has bullish sentiment towards Coffee very low. (17% Bulls).
The trend remains down for Coffee. It finds itself at a price point where a short-term counter-trend rally could take place. If Coffee continues weak and breaks support at (1), aggressive traders would want to use the support break as a new price point to short it.
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