Daily :The new low @ 253.30 after breaking the uptrend line support around 275 could mean that the recent strength is only a short term upside / pull back correction , this upside move should be contained under 285/290 before coffee futures prices resumes its medium term downside correction.
Weekly: A break of 275 will allow a quick pull to 285/290 ; on the other side a failure to hold the 255 support will mean a quick test of 240.
Monthly: Without any weather (frost) scare in this current Brazilian winter season prices should test the downside support @ 225+- , where fundamentals (S/D) will define next price move.
Bottom Line: Odds favor the downside, with a bearish flag being formed in conjunction with a pull back at the old broken support uptrend line and mov avg resistance.
MACD has room to the downside.
ADX is showing a weakened, if not exhausted uptrend.
RSI is giving temporally support @ 50 (helping to form the recent bearish flag).
SLOW STOCH is negative but not yet oversold.
Trade idea: Sell between 275 and 290 and buy 310 aug calls (1 to1 ) if any frost scare , add to shorts on downside break of 255 and buy back close to 240.
No comments:
Post a Comment
Elliott wave and Fibonacci based forecasts and tecnical analysis of all futures commodities markets, stocks and indices for advanced traders and day traders .
POWER TRACK ELLIOTT WAVE FORECASTS FREE