COFFEE

Back in January and February I analyzed Coffee price and posted long and medium term charts. A that time Coffee had tested its long-term trend resistance at 280 levels for the 4th time and it was trading slightly below its 200 day moving average at 240 levels. Coffee had a perfect parallel trend channel and the target for the medium-term correction was the lower boundary of this trend channel. When technical outlook deteriorated further in February, I posted another update on this commodity warning of more downward pressure.

http://techcharts.wordpress.com/2012/01/23/coffee/ (January)

http://techcharts.wordpress.com/2012/02/15/coffee-2/ (February)

We are now in June and Coffee is very close to its major support level at the lower boundary of the long-term trend channel. With RSI reaching oversold levels and price nearing to test the long-term trend support, Coffee is presenting a good buying opportunity at these levels. By placing a medium/long-term stop-loss at 150 levels, we can expect the price to stabilize and move higher in the following months.