Coffee Higher Low (D)

The expectation is the downtrend in the coffee price has ended and we are looking for a higher low to form. I believe that just occurred with an intraday low at $118.90.
 
Let’s review the daily chart.
 

COFFEE DAILY CHART 

 
The horizontal line denotes the previous swing high which price recently surpassed thereby creating a higher high. I believe we now have a higher low in place and a new bull trend in play.
 
I have added Fibonacci retracement levels of the first leg higher and this low has clipped the 61.8% level which is a common setup for higher low. If price were to trade lower, then the 76.4% level would come into play.
 
I have drawn a Fibonacci Fan which is the same fan I used in analysis produced back in March 2016 which was used to bring in the higher high. That analysis called for a higher low back at the 88.6% angle and that is exactly where price currently finds itself. 
 
The RSI and MACD indicators both show bullish divergences at this low.
 
So, I believe conditions are now excellent for price to turn back up and trade much higher with high targets outlined in previous longer term analysis.
 
 

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Disclaimer

All information contained in this website is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Put simply, it is JUST MY OPINION.

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