Last month I wrote ‘Maybe the future is sideways to a little higher for the next period?’ but in my conservative way I decided at the time to keep the bullet point for coffee mildly bullish. Well that didn’t work out as prices fell away but in so doing, at least forming a bottoming action based on the broken but seemingly still valid 2008-to-date Uptrend (currently 355) aided by a new Sep-to-date Uptrend (currently 359) before moving back up.
Prices are back over the Long MA…just, also over the Sep – Oct 50% Fib at 373 but NOT over the very recent 50% Fib of the move down at 377…though not far off.
We have also had further Bow Tie formations in the MAs but I choose to reserve judgement on these just yet. Most importantly is that we have our first close over the Jul-to-date Downtrend (currently 371) and we ought to be looking for a second consecutive one. Now perhaps the conservative nature I espouse may work its way through as last Thursday we had a Key Reversal Up which led to this first close over the Downtrend.
Hence, I will keep the bullet point as it is…for the moment!
Further support is at 369, 367, 361 & 346. Further resistance is at 379, 381, 387 & key at 392. Looking for a second close over the Downtrend now.
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