Here we are almost at the end of the month and another week of significant price action. Seemed like a good time to review some charts. The first chart is a monthly chart starting in 1985 or almost 40 years. You can clearly see that the trend line drawn has provided 4 important resistance levels to the coffee market before being decisively penetrated in November of 21 ( I expanded the chart so you could see the latest price action more clearly)Since then the market tested this trend line as support many times and for all intents and purposes the support has held. In the next post you can see the price action relative to the trend line on a weekly and then on a daily. No one likes corrections, yet everyone says corrections are healthy But no one wants them in a market where they are positioned. The fact is coffee rallied 150% and was the best preforming commodify for the year. Many negative factors have occurred in 22 which I won’t list and yet the market has for all intents and purposes respected this trendline. In the meantime all the indicators that were overbot have reset to neutral. In fact there is no excess in the market and traders long positions have all reset to very low levels. The technical position to close the week was very positive and if we get a good follow through next week we could incite some very powerful buying. As you may know the market will be closed on Monday. Tuesday will be the last trading day for May. If you observe the last chart included. A monthly chart showing the last 10 months you can see that a close at 2.35 will be the highest monthly close for this bull move to date! It’s certainly possible and should it happen the monthly chart will have a very bullish look that will be hard to ignore!