March Coffee Futures
The March coffee futures appear to poised for further gains going into the New Year. Commencing from the December 12th low of 118.30 the first leg higher appears to a leading diagonal formation which are not all that common. Further more the decline from the fall of last year hardly seems sustainable and the recent low comes in just off a major trend line. Also of note is the appearance of momentum divergence in multiple time-frame price charts. In my opinion any pullback to roughly 123.50 would present a nice location for the establishment of a long position. My first upside projection comes in just above 133. I’d be recommending a stop loss below this weeks open of 120.65. Over head 2nd target checks in at +/-140. At any of these level one would be looking at an favorable risk to reward return.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. I welcome you to contact me at Walsh Trading to discuss my assessment of this and any other market.