Coffee Futures Daily: the close as of yesterday afternoon is sitting right on extremely crucial support for the bullish case. A close below will, more than likely target the 11/2013 low (dashed green line) and then, perhaps, the projected .618 and .786 retracement area.
Here’s what I’m watching:
- Certainly looks like an ending diagonal play carving out 1,2,3,4,5 w/ 5 ending Friday.
- 3 drives to a bottom BUY
- Don’t like that the key RSI support zone was broken on close yesterday.
One last thing, and somewhat related is the recent price action of Starbucks (SBUX). If you remember from this recent post on Starbucks stock and coffee we were completing important BULLISH relative strength pattern for Coffee Futures. In summary, SBUX declines when the relative strength of coffee futures/SBUX improves.
Thanks for reading and have a great week.
Twitter: @BartsCharts
Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
