Coffee Future

Coffee Future

If you want to buy coffee there is no need to go to Starbucks. The price chart of the world’s most popular beans reveals an opportunity for those who base their trading on technical chart analysis. In the last week the price movement has almost ground to a halt as the trading range shrunk into a triangle formation. This week a breakout is imminent. Thursday and Friday saw the price stabilize just on the simple moving average of 20 while a low from early April was confirmed as support. In addition technical indicators have generated long entry signals. RSI crossed over the 50 line favoring an upswing, MACD has triggered a buy signal, and the Slow Stochastic indicator is on its way up into bullish territory.


About the author: Alexander Wiederhold has been active in a variety of markets for well over ten years including commodities, stocks, index futures, and currencies in Europe, North America, and Asia. He is a frequent author and market analyst for international financial institutions and various investment publications.

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