Coffee Prices Hit A 2 Year High

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Updated: Dec 9, 2019, 19:08 GMT+00:00

Coffee futures in the March contract is trading sharply higher by another 400 points or 3.21% hitting a 2 year high continuing its bullish momentum on major concerns about a drought developing in the country of Brazil which is the largest producer in the world.

At the current time as I have talked about in many previous blogs I am not involved, but I do think higher prices are ahead as I am certainly not recommending any type of bearish position and if you are in a long futures contract I would continue to place the stop loss under the 10-day low.

Which now stands at 115.50 as an exit strategy as the chart structure will improve on a daily basis therefore the monetary risk will be reduced substantially in the coming days ahead.

As I have written about in previous blogs I want you to take a look at the 2014 chart as coffee prices exploded in the month of January due to a drought occurring in the country of Brazil and if that situation develops once again you will see higher prices develop quickly as the volatility certainly has expanded to the upside so stay long as there could be significant room to run.

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: INCREASING

This article was written by Michael Seery (CTA—COMMODITY TRADING ADVISOR) www.seeryfutures.com