Coffee Futures–-Coffee futures in the May contract is trading higher by 105 points at 94.00 a pound as prices still look to be forming a bottoming out pattern in my opinion. Coffee inventories remain at 2.493 million bags as we are still right near a 4 3/4 year high as inventory levels have been the main culprit for these depressed prices as we are still hovering right near a 14 year low.
The chart structure is outstanding at the current time as prices really have gone nowhere for weeks as it still looks to me that a possible bottom was created on April 2nd at 91.25 as the breakout to the upside stands at the 4 week high which is at 98.70 which could be touched on any given day due to the low volatility.
Coffee prices are now trading right at their 20 day but still below their 100 day moving average which stands at the 104 level as I can’t imagine this volatility is going to remain at these historically low levels for much longer.
Ideal weather conditions in the countries of Vietnam and Brazil which are the 2 largest coffee producers in the world also continues to put pressure on prices, however I do believe all of this poor fundamental news has already been reflected into the price as I still think the downside is very limited.
CHART STRUCTURE: EXCELLENT
VOLATILITY : LOW
If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com
Skype Address: 5da1f85979b7117b
FREE TRIAL FOR THE LIMIT UP COMMODITY NEWSLETTER
If you’re looking to open a Trading Account click on this link www.admis.com
Click on Members Login—-Username—coffeeshop
Click login and then click on Blog and click on the title of the story to read—Mike 630-408-3325
Click on my live chat so we can talk as well
There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.