Coffee rallies hitting 14-year high, issues fresh Signal

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Coffee rallied today (10/26) for a second consecutive day hitting a 13-year high as the U.S. dollar also rose. This gives me a fresh buy signal for December Coffee on the daily chart. Brazil, the world's largest coffee producer, announced last Friday that the output from their next crop may be lower than originally expected and now Costa Rica has also lowered output estimates by as much as 3.5%. In addition the Vietnam harvest will be late and that the crop there may not be as large as originally anticipated supporting coffee prices further. Last week coffee gave me a buy signal on the weekly chart (weekly bar ending Oct. 22nd). Coffee is also having an outside month to the upside so far this month on the monthly chart. The U.S. Dollar, which rallied today, gave me a sell signal on the daily chart yesterday. If the dollar drops it may add bullish reinforcement to coffee prices. SEE CHART Call me for details and trade set-ups at (312) 277-0112 or toll free at 888-281-4161 or email: LBaer@zaner.com For intraday updates follow me on Twitter: @LarryBaerTrader Larry Baer's Traditional Trending Strategy video: http://www.youtube.com/watch?v=iro7sFQRG5k Larry Baer's Options & Futures Trading Strategies: http://larrybaertrader.wordpress.com/
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