Lower coffee prices for trading week
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Café Futuros —The future coffee in the December contract was closed last Friday in New York at 111.55 per pound, while it currently trades at 109.00, a drop of more than 250 points in the week, as prices are stuck at a 3-week consolidation pattern.
I have recommended a bullish position over the past few weeks around the 109.55 level and if you took that trade, continue to place the stop loss under the low of the contract, which is at 96.90, as the chart structure does not will improve, as the stop loss will not increase, as the monetary risk will remain the same.
Coffee prices are negotiating in their 20 days, but still well below their 100-day moving average, as prices surpassed slightly above the level of 135 in early September, as prices fell a lot, as there are still major concerns about Coronavirus containing demand. with a 7-10 day weather forecast with some rain on the horizon, maintaining pressure on prices.
In my opinion, I believe that the long-term coffee fund was finally cemented, as I have an upward trend for all commodity sectors in 2021, as we could see major upward trends due to all the stimulus and demand coming back across the world, so stay as long as I think the disadvantage is very limited.
TREND: MIXED — LOWER
STRUCTURE TABLE: SOLID
If you would like to contact Michael Seery (CTACOMMODITY TRADING ADVISOR) at 1-630-408-3325, I will be happy to assist you with your negotiations or visit www.seeryfutures.com
TWITTER — @ seeryfutures
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About the author
Michael is the sole owner of SEERYFUTURES.COM which is a consultancy, consultancy and education company in futures and commodities options.
Michael frequently appears on several business networks, including Bloomberg News, Fox Business, CNBC Worldwide, CNN Business and Bloomberg TV. He also writes market reviews for various commodity sites and is interviewed for comments on commodities by the Wall Street Journal. He is also a guest of First Business, which is a national and internationally syndicated business show.
Michael started his career in 1990 at the Chicago Board of Trade as a runner. He soon worked his way into becoming a Series 3 broker. He works with experienced traders and beginners, teaching them how to trade in the futures markets and also using simple and complex option strategies. Michael covers all markets, including grains, metals, energy and all other futures markets that are traded.
For Michael, the biggest lesson any trader needs to learn is risk management. Michael believes that this is the most important factor in the negotiations. He also works with traders to help them determine the appropriate risk for their trading style. Michael spent a lot of time instructing his clients to help them understand trading strategies and techniques, while enjoying quality time with clients examining the markets or just talking about general trading philosophies.