Courtesy of Chris Kimble
Aside from the energy space, commodities have had trouble getting going. In particular, Coffee prices have taken it on the chin. But something good may be brewing in coffee land.
Coffee is in a long-term downtrend but it’s short-term “trading” picture may be brightening. In the chart below, you can see that coffee prices trying to reverse course at10-year lateral support at (1). This reversal also has coffee breaking out of a steep bullish falling wedge at (2).
The potential for a trading bottom is further supported by Coffee’s lowest momentum reading in 5 years at (3). Past rallies have come from similar momentum readings.
Coffee Chart
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One last nugget of support for Coffee comes by way of coffee hedging positions (via SentimenTrader). Based on past history, when traders are positioned like this it’s been closer to lows than highs.
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This article was originally written for See It Markets.com. To see original post CLICK HERE.
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