Subscribe to RSS

Forex Technical Analysis #C-COFFEE : 2016-02-10

Drought in Columbia

Brazil has cut its coffee export in January 2016 by 8.8% compared to the January last year and by 16.5% compared to last December. Market participants worry the crops in Columbia may suffer due to the droughts. Will this push the coffee prices up?

Three weeks ago coffee hit a fresh 2-year low and now its prices are struggling for growth. According to the U.S. Commodity Futures Trading Commission. It has been contracting for two weeks having reached the 4-week low. This week many coffee producers are on holidays due to the carnival in Brazil and the Lunar New Year in Vietnam. Some market participants believe the prices fell on Friday and Monday due to the pre-festive sales. Their further dynamics will depend on the weather in Latin America and Vietnam which are the main regions of coffee production. This January Columbia increased its production by 4% compared to the same period of 2015, and by 16% to 14.2mln 60kg bags since February 2015 to January 2016. These data are already priced in. The drought and the probable revision down of the crops outlook may push prices up. According to the polls, the majority of the markets participants expect the 3mln bags deficit of coffee in the global markets in 2015/16 season which is to last till this September. If the forecast comes true, it will be the first deficit since 2009/10 when the prices rose almost threefold.

Coffee

On the daily chart Coffee: D1 is in downtrend but is struggling for growth from the resistance of the channel. The MACD and Parabolic indicator give buy signals. The RSI is neutral and below 50, no divergence. The Bollinger bands have contracted which means lower volatility. The bullish momentum may develop in case coffee surpasses the last fractal high, the Bollinger band and the 200-day moving average at 126.5. This level may serve the point of entry. The initial risk-limit may be placed below the Parabolic signal, Bollinger band and the second fractal low which is the 2-year low at 112.4. Having opened the pending order we shall move the stop to the next fractal low following the Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level at 112.4 without reaching the order at 126.5, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Buy
Buy stop above 126.5
Stop loss below 112.4

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Trade with and win gorgeous Lexus RX 200t – FBS Inc

Trade with and win gorgeous Lexus RX 200t – FBS Inc(0)

Drive Lexus from FBS Inc! Enter the challenge and win gorgeous Lexus RX 200t! Car Promo is a super popular project among traders, because we really do present cars to FBS clients! This time it is a gorgeous Lexus RX 200t. Link:  Trade with and win Lexus RX 200t Link:  Event for Malaysian and Thailand

100% Bonus on your $100 Minimum Deposit – AvaTrade

100% Bonus on your $100 Minimum Deposit – AvaTrade(0)

Up to 100% Bonus on your $100 Minimum Deposit. Start forex trading today and in honour of our Irish roots we’ll give you a St. Patricks Day special bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus offer: 100% New

Pro Forex Contest for Demo Trading Accounts – FBS

Pro Forex Contest for Demo Trading Accounts – FBS(0)

FBS Pro Forex Contest for Demo Trading Account Total Prize fund $1000. It is necessary to open a forex demo contest account and finish with the biggest balance. Link:  Event for Malaysian and Thailand clients Link:  $88.8 Forex No Deposit Bonus Link:  $123 Forex No Deposit Bonus Link:  100% Forex Deposit Bonus Promotion Contest conditions

100 USD Wanga Bonus Promotion – Fort Financial

100 USD Wanga Bonus Promotion – Fort Financial(0)

100 USD Free Wanga Bonus Promotion to All New and Existing Traders. You can withdraw your Free Wanga Bonus Amount or use it for further forex trading on your account Link:  100 USD Wanga Bonus Promotion Link:  $5 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit Link:  15% Support Margin

$50 Forex No Deposit Free Power Bonus – GIC Market

$50 Forex No Deposit Free Power Bonus – GIC Market(0)

$50 Forex No Deposit Free Power Bonus Promotion to All New Traders. $50 Forex No Deposit Free Bonus is one of the unique promotions that offer new traders money to open a live trading account. Link: $50 Forex No Deposit Power Bonus Available to: New and Existing Traders. Ending Date: 31 December 2017 Bonus Offer:

$3500 Free Forex No Deposit Trading Bonus – InstaForex

$3500 Free Forex No Deposit Trading Bonus – InstaForex(0)

Get $3500 Free Forex No Deposit Trading Bonus Start Trading Forex and CFD Without Deposit and Without Risks. The new $3500 No Deposit Forex Bonus from InstaForex is an exciting opportunity to start Forex Trade. Link:  $3500 Free No Deposit Bonus Link:  Get 250% Bonus for First Deposit Link:  100% Deposit Bonus Campaign Available to: 

Up to $1000 Welcome Bonus of Every Deposit – FortFS

Up to $1000 Welcome Bonus of Every Deposit – FortFS(0)

Up to 50% Bonus of Every Deposit to All New and Existing Traders. You Deposited $1000 on your account, chose a 50% bonus and got 500 extra dollars to the initial deposit amount. Link:  $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: $5 Forex No Deposit Welcome Bonus

30 USD Forex No Deposit Bonus Promotion – Tickmill

30 USD Forex No Deposit Bonus Promotion – Tickmill(0)

$30 No Deposit Forex Welcome Bonus Campaign to All new traders. $30 Free Forex Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Campaign Link:  Forex Monthly Live Trading Contest Available to: All new traders

$25 Deposit and earn $5000 Cashback Bonus – UFX

$25 Deposit and earn $5000 Cashback Bonus – UFX(0)

100% Forex Real Money Cash-back Bonus Promotion to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Forex Cashback rewards bonus program Link:  $5000 BitCoin Rewards Bonus Promo Link:  $50 Free and Trade in Three Steps Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack

300% Deposit Bonus Plus Free Forex Signals – MarketsYes

300% Deposit Bonus Plus Free Forex Signals – MarketsYes(0)

300% Tradable Bonus Promotion up to $3000. MarketsYes is offering all prospective clients’ deposit for up to 3000 USD/EUR/GBP a 300% Forex Tradable Bonus. Link:  300% Tradable Bonus Promotion Available to: All new traders Ending Date: 31 December 2018 Bonus Offer: 300% Tradable Bonus Promotion up to $3000 to all new traders SETTLEMENT COMPANY CORPORATION

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories