Coffee Futures Analysis for 07.05.2008

COFFEE FUTURES - KC #f

There has been some talk on the news about rising cost of coffee futures, so it is a good time to take a look at charts.

Monthly chart shows that, while the media has been reporting rising coffee future prices in the last three months, the current price remains below the high made in February 2008. The chart shows that the whole move up off the November 2001 low is tracing out a corrective pattern. Will the February 2008 high hold as resistance? Only time will tell.

Weekly chart shows that the move up off the March 2008 low seems to be tracing out an abc 3 wave corrective pattern, which has met with resistance at the .618 fib area. Topping tails indicate selling pressure, as price inches higher into resistance. While there are small signs of weakness, there is no sell signal/pattern evident on this timeframe.

Daily chart better shows the corrective pattern that is being traced out. IF this is indeed a corrective pattern, THEN look for prices to fall once the corrective pattern is complete.