Coffee in demandCoffee has moved from a 2020 low in May of $ 95 to the present of $ 120 ( 45 bars) .
The bias is to the long side ( all Daily MAV to upside since late June ) , and recent break of downtrend from Nov 2019.
Enter - around 119
Target - around 141 ( prior high)
Stop - 108 ( 3 atr)
RR = 2
ICF1! trade ideas
KC 6/29 ReviewCoffee finally seeing a breakout after spending most of June in a range. Sept. contracts finally seeing a close, albeit a small one, above the 100 mark. Temps in Brazil, along with some chatter about a frost, boosted prices today. Shipping delays are helping provide some near-term support as well. From a technical standpoint, prices closed almost right at the 34-day MA. Today's resistance also coincided with the 23.6% retracement off the March 26 break high / June lows. The shorter 9-day MA, which was flat over the last week, has started to turn higher as well which is supportive for an upward trend. Overall, fundamentals are giving a bullish tilt to prices here as frost concerns have historically been the catalyst for further upside. A close above 103 points to a retest of the 38.2% retracement at 108.45.
Coffee 6/25Coffee range bound, but consolidating lower. Front month closing down well off the highs. Some follow through after the reversal earlier in the week. Demand remains soft and the continuing pullback from the BRL is putting more pressure on prices. However, slower harvests may provide some support. ICE stocks down ~4.2K bags.