Coffee technical setup remains bullish
Technical Analysis Summary COFFEE: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Neutral | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe #C-COFFEE,Daily is rising above the 200-day moving average MA(200), which is rising itself. We believe the bullish momentum will continue as the price breaches above the upper Donchian boundary at 124.68. A pending order to buy can be placed above that level. The stop loss can be placed below 112.93. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
Futures traders added to their long positions in coffee. Will the COFFEE price continue rebounding?
The International Coffee Organization (ICO) reported its composite indicator increased by 4.7% to an average of 103.66 US cents/lb in July 2020, following three months of declines. And net long coffee positions of coffee futures traders rose last week, according to Commodity Futures Trading Commission’s Commitment of Traders report. Thus, the non-commercial net long position increased over the one week period ending in August 17 by 27.03% to 16,526 net longs, which is the equivalent of 4,685,048 bags. So speculative traders increased their bullish position. Bullish sentiment buoys coffee price.