Coffee Prices Up 100 In Early Trade

Coffee Prices Up 100 In Early Trade
Coffee Prices Up 100 In Early Trade

Coffee Futures—Coffee futures in the December contract is trading higher by 100 points at 99.40 a pound starting the week off on a positive note.

I have been recommending a bullish position from around the 101 level & if you took that trade continue to place the stop loss at the 14 year low standing at 93.40 as an exit strategy as I still believe higher prices are ahead.

For the bullish momentum to continue we’re going to have to break the September 16th high of 104.95 in my opinion as fundamentally speaking Friday’s weekly Commitment of Traders (COT) data showed that funds increased their net-short robusta coffee positions by 1,923 contracts in the week of Sep 17th to a record 47,357 contracts which is the most since data began in 2011, which could provide fuel for a short-covering rally.

Coffee prices are trading above their 20-day but still below their 100 day moving average as the trend is mixed, however I do believe that the 14-year low will hold as it was touched on multiple occasions and rallied every single time so continue to play this to the upside as the risk/reward is in your favor.

TREND: HIGHER—MIXED

CHART STRUCTURE: EXCELLENT

VOLATILITY: AVERAGE

 

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

 

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