Coffe regroups and signals a fresh buy, can it take out its recent highs?
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After two days of decline since posting a 12 year high, Coffee futures rallied today (8/19) to close up at 177.30. This move signals to me a fresh buy signal on the daily chart. It appears that the retracement may be over since coffee made its last high Monday and could possibly make a run for new highs.
Heavy rains and droughts in various areas of the globe continue to hamper certain coffee productions and supplies may not improve until Central American harvests begin in October. "People are concerned about short-term supplies," said Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago. "There is also a lot of technical buying."
If Coffee can close above 181.50 in the next few days it'll suggest to me that this trend up may be longer term.
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