While Coffee in the midst of an 8 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 $143.9, Arabica Coffee is up to $149.75 per pound, which makes for a move of 4.07%/$5.85 today.
Uptick comes while some more positive signs for Coffee are out as highly important Initial Jobless Claims data from United States beat analyst expectations of 215,000 with a reading of 205,000.
Meanwhile, United States Consumer Price Index released today at 13:30 UTC with a figure of -0.1%, while the previous figure was 0.1%. United States Core Consumer Prices came out at 0.3%, while a consensus of analysts was expecting 0.3%.
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. Having crossed its lower Bollinger Band® at $154.48, Arabica Coffee could be headed for a downward correction.
Overall, looking at the technical analysis landscape, it seems the Coffee future is likely to reverse course and start pointing down in the short term.
Rallies can also be seen in other Softs, Cocoa climbs 0.42% to trade around $2,644.
Though Coffee is going up, other Softs are underperforming — Cotton closed at $81.91 (down 2.79%).
So far this year, Arabica Coffee has declined 5.42% while touching highs around $258.7 earlier this year.