06-19 13:43: ICE Coffee Gains Modestly in Consolidative
By Kira Brecht
ICE July coffee futures traded modestly firmer in Wednesday morning action.
The near-term July coffee trend weakened in recent sessions, as the contract
breached and now trades below its 20-day moving average at $0.9827 a pound. The
long-term, primary July coffee trend also remains bearish and the rally to the
June peak at $1.0615 can be considered corrective and counter-trend.
ICE July coffee recently traded up 90 points at $0.9520 a pound.
Very short-term, the intraday July coffee picture reveals potential for
sideways to firmer consolidative trade. The hourly relative strength index
turned higher from oversold levels recently and points up at 47%. Short-term,
nearby July coffee resistance comes in at $0.9590-$0.9600 and then $0.9680. A
clear hourly downtrend is evident on the 60-minute July coffee chart. Hourly
support comes in at $0.9400 and a retreat below that floor would be needed to
signal a resumption of the downtrend.
The daily July coffee chart reveals a primary long-term downtrend. The rally
from the May low at $0.8760 into the June 4 high at $1.0615 failed to pierce
declining 200-day moving average resistance now at $1.0643. July coffee has
traded below its 200-day moving average since November 2018 and the failure to
pierce that zone in early June keeps the primary trend negative.
The 20-day moving average also offers daily chart resistance at $0.9827, and
as long as that holds firm, July coffee bears will retain the near-term
In recent weeks. July coffee etched a steady retreat off the $1.0615 high
into this week's low at $0.9400 and the market is vulnerable to a digestion
Looking ahead, a retreat and close below nearby July coffee support at
$0.9400 would signal a resumption of the minor downtrend and open the door to
slippage toward minor support at $0.8850, the May 21 low and then major support
at $0.8760, the May 7 low.
(END) Dow Jones Newswires
June 19, 2019 09:43 ET (13:43 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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