Technical Analysis #C-COFFEE : 2020-06-23

Recommendation for COFFEE: Buy

Buy Stop : Above 100.5

Stop Loss : Below 93.5

Indicator Value Signal
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Chart Analysis

On the daily timeframe, Coffee: D1 pushed off long-term support and is trying to break the resistance line of the downtrend upward. A number of indicators of technical analysis formed signals for a further increase. We do not exclude a bullish movement if Coffee rises above the resistance line of the downtrend and the last upper fractal: 100.5. This level can be used as an entry point. We can set a stop loss below the Parabolic signal, the last lower fractal and long-term support line: 93.5. After opening the pending order, we move the stop loss 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, the most risk-averse traders can switch to a four-hour chart and set a stop-loss, moving it in the direction of the trend. If the price meets the stop level (93.5) without activating the order (100.5), it is recommended to delete the order: there are internal changes in the market that have not been taken into account.

Fundamental Analysis

The strengthening of the Brazilian real triggered a surge in prices for Arabica coffee. Will the Coffee quotes continue to grow ?