Coffee Could Start Another Leg Up From Current Levels

By Alexandros Yfantis
Monday, September 26, 2016 10:16 AM EDT

The Coffee price has consistently been making higher highs and higher lows respecting trend lines and the technical support by the Ichimoku Cloud. Combined with a fractal move it made back in 2009-2011 we can  be very optimistic for the future.

Coffee is testing short-term support as shown by the upward sloping trend line. Currently at the 78.6% Fibonacci retracement support of its latest rise, this is a level where Coffee could reverse back to the upside for a new higher high, assuming it continues its up trend and repeats what it has been doing for the last 2 months.

Taking a closer look in the 4 hour chart we see price indecision at the upper Cloud boundary and 78.6% Fibonacci retracement. The recent low of 148 is very close, so from a risk reward perspective the bullish side is very promising if prices start to bounce from current levels. The first confirmed indication of a possible short-term upside reversal will come with a break above 152.

Following is the fractal map of coffee and its expected path ahead if it copies the move it did back in 2009-2011. So far it has moved very closely to its past action which increases the chances of continuing to towards our 200 target.

I'm bullish coffee for the short-term as long as we are above 148. A break below it will open the way for a deeper correction, maybe towards 138.

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