Arabica Coffee (KC) Breaks Downtrend Since Mid October

KC put in its strongest weekly performance in about a month, reinforcing the line in the sand at the 180 horizontal support zone as seen in the attached chart. The 180 level also coincides with the uptrend support line connecting the low earlier in the week with the January 2014 low. Based on the renewed upward momentum these last few days, and the apparent break of the downtrend from mid October, it would appear that the uptrend line break (which appeared last week if you imagine an uptrend support line connecting the same January 2014 low with the July and September 2014 lows) gave a false sell signal alert. The daily Stochastics and RSI are now trending up strongly from oversold levels, while the daily MACD is beginning to positively crossover. Some profittaking can be expected early next week, but the general trend in the next few weeks should be up, with a target next week around 205-206, followed by the next target at the October high.

Feel free to visit stks.co/g1J55 for yesterday's technical analysis on $KC_F, $VIX, $ES_F, $NQ_F, $EURUSD, $DX_F, $SB_F, $AUDUSD, $CT_F, $EURCHF, $GBPUSD, $SI_F

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