Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
The technical action looks weak, and the market looks somewhat vulnerable to more downside action, but the tightening supply outlook may provide support on a strong corrective break. The coffee market continued to pull back from last week’s rebound yesterday, as prices lost their upward momentum from last week. May coffee sustained heavy losses but was able to hold within the recent trading range, as a lack of fresh supply/demand news nay gave eroded the support from near-term tight supplies. A rebound in the value of the Dollar added to pressure on coffee prices, although indications of lower coffee exports from Uganda provided some mild support. Indonesia has been a more active seller than its neighbor Vietnam, even with projections for a 30% decline from last season’s production. Many traders will continue to watch the daily changes in ICE coffee stocks levels for early indications that coffee supplies are going to relieve the current tight stocks situation in North America and Europe. ICE exchange coffee stocks were down 2,574 bags to 1.583 million, with 2,949 bags pending review.
TODAY’S GUIDANCE: May coffee does not appear to have enough strength to stay near the current price levels. Unless there is more supportive news over the next few sessions, there will likely be an increasing chance of a downside breakout.
TODAY’S MARKET IDEAS: The market’s technical action has turned sour despite help from outside market forces. Stiff resistance for May coffee comes in at 278.80 with some closer-in resistance at 274.20. A resumption of the downtrend would leave 253.25 as the next downside target.
Coffee: Without More Supportive News, May Likely to Slide
by Terry Roggensack on March 24, 2011
Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
The technical action looks weak, and the market looks somewhat vulnerable to more downside action, but the tightening supply outlook may provide support on a strong corrective break. The coffee market continued to pull back from last week’s rebound yesterday, as prices lost their upward momentum from last week. May coffee sustained heavy losses but was able to hold within the recent trading range, as a lack of fresh supply/demand news nay gave eroded the support from near-term tight supplies. A rebound in the value of the Dollar added to pressure on coffee prices, although indications of lower coffee exports from Uganda provided some mild support. Indonesia has been a more active seller than its neighbor Vietnam, even with projections for a 30% decline from last season’s production. Many traders will continue to watch the daily changes in ICE coffee stocks levels for early indications that coffee supplies are going to relieve the current tight stocks situation in North America and Europe. ICE exchange coffee stocks were down 2,574 bags to 1.583 million, with 2,949 bags pending review.
TODAY’S GUIDANCE: May coffee does not appear to have enough strength to stay near the current price levels. Unless there is more supportive news over the next few sessions, there will likely be an increasing chance of a downside breakout.
TODAY’S MARKET IDEAS: The market’s technical action has turned sour despite help from outside market forces. Stiff resistance for May coffee comes in at 278.80 with some closer-in resistance at 274.20. A resumption of the downtrend would leave 253.25 as the next downside target.
Tags: Coffee, Softs
About Terry Roggensack