Price action has been consolidating within the triangle, and the market appears to be approaching the apex of the pattern, where a decisive breakout or breakdown often occurs. A break below the 31,215 support level could confirm the bearish continuation implied by the descending triangle and open the door to further downside, possibly reaching the 29,600 target. On the other hand, a breakout above the descending resistance trendline would invalidate the pattern and could indicate a bullish reversal.
The accompanying technical indicators support the bearish outlook. The MACD is showing signs of weakening momentum, with a potential bearish crossover in sight. The Stochastic RSI is trending downward, indicating fading buying strength, while the Relative Strength Index (RSI) remains in neutral territory but is slowly drifting lower, reinforcing the possibility of continued downward pressure.
Overall, the descending triangle on the KCH25 Coffee chart suggests that the market is under pressure and may be gearing up for a breakdown unless strong buying support emerges at current levels. Traders watching this setup would be looking for confirmation before entering positions in either direction.
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