Yesterday at a glance: Coffee dipped as low as $186.2 before recovering some lost ground. However, the rebound failed to push the stock to where it started the session ($188.7) with ICE Coffee closing the day at $188.95 per pound.
Meanwhile, United States CFTC Gold speculative net positions released yesterday at 19:30 UTC with a figure of 77,000, while the previous figure was 94,400. United States CFTC Nasdaq 100 speculative net positions released yesterday at 19:30 UTC with a figure of 1,500, while the previous figure was 8,500. United States CFTC Crude Oil speculative net positions released yesterday at 19:30 UTC with a figure of 251,500, while the previous figure was 259,200.
Support/Resistance levels obtained from chart analysis indicate that Coffee could begin to recover as it approaches significant support, now $1.73 away from $187.22. Dipping below could be an indication that further losses are ahead. Trend-following investors would be interested to note that 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. According to momentum evaluation, the Relative Strength Index indicates ICE Coffee is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $182.64, a low enough level to, generally, suggest that Arabica Coffee is trading below its fair value.
With market volatility ebbing, the current technical outlook indicates ICE Coffee will remain range-bound for the immediate future.
ICE Coffee is now trading 11.59% below its 3-month high of $258.7.