Has Coffee C Hit Bottom Yet? – Technical Analysis

Coffee C or Arabica coffee is showing signs that higher prices might be around the corner. Those who cleverly bought in the last two week should be very content with their decision. After reaching a low price of $115 no seen since July 2009, the price of coffee has gained around 9 dollar to $124 a bag.

Arabica coffee stocks have been edging higher. Traders believe that at current levels coffee is cheap and that soon enough demand, (which isn’t favoring Arabic coffee yet) will soon pick up after Robusta Coffee stocks are depleted. Buyers may be forced back to Coffee C or Arabica Coffee to cover needs.

Trading volume of Coffee C has been higher in the last 6 month compared to the previous year. It could be a sign that the current turn around in prices it is set to continue till it reaches a more adequate price that suit suppliers.

Technical indicators are also turning positive and after last week bullish engulfing pattern, a new flow of traders could push the price higher. But there could be also the case that traders are testing the market and get not enough support.


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