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Arabica Coffee Technical Analysis - Arabica Coffee Trading: 2020-03-02
Coffee Technical Analysis Summary
Above 113
Buy Stop
Below 99
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| MA(200) | Buy |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Buy |
Coffee Chart Analysis
Coffee Technical Analysis
We do not rule out a bullish trend if COFFEE: D1 rises above its last maximum: 113. This level can be used as an entry point. The stop loss is possible below the 200-day moving average line, the last two lower fractals and the Parabolic signal: 99. After opening a pending order, the stop loss can be moved following the Bollinger and Parabolic signals to the next fractal minimum. Thus, we change the potential profit / loss ratio in our favor. After the transaction, more risk-averse traders can change to a four-hour chart and set a stop loss, moving it in the direction of the trend. If the price overcomes the stop level (99) without activating the order (113), it is recommended to close the position: market sustains internal changes not taken into account.
Fundamental Analysis of Commodities - Coffee
Coffee sales in South Korea increased by 2.2% up to $ 1.1 billion in 2019. Will COFFEE quotations grow?
Demand for coffee in South Korea expanded mainly due to sales of bottled coffee drinks. They increased by 60% last year. Investors believe that because of the coronavirus epidemic, people cannot visit cafes often. Wherein, the sale of bottled coffee drinks that you can drink at home is unlikely to be significantly reduced. Earlier, Nestle and Starbucks announced the development of new coffee products in competition with JAB Holdings. It might also be considered good news for the coffee market. Particularly, Nestle intends to sell capsules under the Starbucks brand in 50 countries for its Nespresso and Dolce Gusto disposable coffee makers. To minimize the negative impact of coronavirus, it is proposed to use online orders and sales via the Internet. Тhe statement of the Brazilian National Coffee Council (CNC) may be another positive factor for the coffee quotes. They declare that Brazil has very small stocks of coffee that may not be enough before the new harvest in May. Note that according to INTL FCStone, the historically expected maximal coffee yield in Brazil this year is 65.1 million bags of 60 kg. This is already included in the price. The cost of coffee can greatly depend on the weather.
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
