Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Coffee Prices Test Higher Levels

ByGregory W. Harmon
Published 07/24/2012, 11:55 AM
Updated 07/09/2023, 06:31 AM

Coffee, (KC), is at an important juncture after finding a bottom at the 1.50 level. The weekly chart below shows a move straight higher after that Tweezers bottom, and a substantially oversold RSI. With the RSI now flirting with the mid line and closing in on a turn to bullish and the MACD rising and supporting further price action to the upside, we find the price retesting a critical level. It is at the 61.8% Fibonacci retracement level of the long move higher into early 2011. Between this level at 1.88 and the rising 200-week SMA at 1.74, was a critical area on the move lower as it consolidated there for 10 weeks.

Now back-testing it from below, presents a trade opportunity either to the downside on a failure or to the upside on a break higher. A Measured Move lower takes it well below a full retracement at 1.13. And a break higher sees 2.11 as the next target. Even if you do not trade Coffee this can be important. Starbucks, (SBUX) reports Thursday night. A prolonged rise in Coffee prices will impact their earnigns and other Coffee companies like Caribou, (CBOU), Coffee Holdings, (JVA) and maybe Green Mountain, (GMCR). Think you do not need to care about Coffee prices, think again.
Coffee
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Original Post

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.