Coffee About To Heat Up And Breakout?

 

Coffee has been anything but hot over the past 3-years, as it has declined nearly 50%. Is cold Coffee about to heat up? Possible in the short-term!

This chart looks at Coffee futures over the past 16-years. The 50% decline is coffee has it testing its 2005 lows and the bottom of a 3-year falling channel at (1).

While testing this support zone two weeks ago at (1), it created a bullish reversal pattern (bullish wick).

No doubt the trend in Coffee is down and this one-week bullish reversal pattern does NOT change the trend!

If Coffee can break above resistance at (2), look for it to heat up in the short-term.

Currently, hedgers have a very big bet in play that Coffee will rally. Keep a close eye on Coffee and Coffee ETF JO over the next couple of weeks, as an upside bullish breakout test is in play.

 

 

Fundamentals tell you what to buy.  Our chart patterns show when to buy! Employ the Power of the Pattern 

See sample of our most popular research reports here  

Receive my free research to your inbox, immediately after it's posted to the blog

Email services@kimblechartingsolutions.com  

Call us Toll free 877-721-7217    International 714-941-9381 

Website: KIMBLECHARTINGSOLUTIONS.COM.