While the Coffee future in the midst of a 3 day downtrend Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. After closing the previous trading day at $166.05, ICE Coffee is up to $167.05 per pound, which makes for a move of 0.6%/$1 today.
The Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. In contrast, 'Bullish Harami' is a candlestick chart indicator used for detecting reversals in an existing bear trend. It is generally indicated by a small price increase that's contained within a broader downward price movement and is commonly associated with a bearish trend coming to an end. The RSI is a momentum oscillator that measures changing price movements on a scale of 0-100. In Arabica Coffee's case, the index has fallen below 30, signalling that the asset is oversold.
The Coffee future is likely to reverse course and start pointing downward in the short term.
Rallies can also be seen in other Softs, Cocoa ascends 0.6% to trade around $2,501.
At the same time, Cotton slumps 2.94% to trade around $84.92.
Today's gains are adding to bullish investor sentiment as robust macro data is expected for release later today; United States Crude Oil Inventories is projected to outperform its last figure with 1.1 million. It previously stood at -3.12 million; data will be released tomorrow at 15:30 UTC.
Also worthy of note, United States EIA Short-Term Energy Outlook scheduled to come out today at 17:00 UTC.
The Coffee future has shed 17.86% over the past three months.