If you follow coffee futures, you know that it has been a frustrating year. Rallies have been stifled and price has fallen in a descending channel.
In short, it’s be a grind lately.
But there may be some good news on the horizon… IF the lows hold.
You can see on the chart below that a potential a-b-c correction may have completed. This will be confirmed with a rally thrust higher breaking out of the descending channel. IF this occurs, then a big rally may be unfolding in the form of a wave 3.
Coffee Futures Chart (continuous contract)
Considering how volatile commodities are, I would definitely define risk with a stop. And even better yet, wait for confirmation.
Thanks for reading.
Further reading from Bart: “Why The Japanese Yen Could Take US Stocks For A Ride“
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.
