Coffee Trend Down?
Eddie Tofpik | Mar 06, 2017 09:44
Coffee: I'm sorry about the lines that mess up this Daily Chart above but they are essential to me as they pose two questions; and they are not whether the market is going up, down or sideways. It is fairly obvious that we have turned Bearish and that the lagging indicators such as the MAs need to catch up - two down and two up does not do justice to the Bearishness I believe is on the market at the moment. We are after all below all MAs, including the Long MA (currently 145.80) over which I expressed concern last time plus we're also below the 50% Fib for 2016 at 143.50.
More indicative of the action is we have a bearish harami on the monthly chart and I suggest that may be the guidance in this market. Going back to the two questions; they are whether the Jan-Feb Bearish Andrews Pitchfork or the Bearish Sen iff Pitchfork is in control - they are drawn above? Both have validity in claiming the angle of attack of the bearish move, but they both cannot both be right. With this in mind I have highlighted with circles three crossovers of Tines between the two Pitchforks.
The 2nd of March has already gone by, but we can see from the action that the short Bearish Open & Close Long Black Marubozo last Thursday might be the start of another move down. The next crossover of Tines is on the 10th of March and the third is on the 16th. Each may be an indicator to the start of a move, the reinforcement of a move or the end of one; look out for these dates as I believe them to be important. Otherwise, support is currently at 138.60,138.20(dynamic), 136.85(dynamic), 135.85 & 132.80. Resistance is currently at 141.90, 142.75,143.50,145.80(dynamic), 146.55 (dynamic), 147.10,148.45, 149.00,149.30 & 149.70(dynamic). As previously mentioned, the bullet point above stays the same at full Bearish.
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