Coffee Under Downward Trend
AvaTrade | Dec 08, 2014 06:59AM ET
Coffee price is trading below the downward trend line on a 4 hour time frame. This confirms that the trend is towards the downside and as long as the price stays below this trend line, bears are in control of the price. The 50 day (shown in Red) and the 100 day (shown in yellow) moving averages are not only trading above the coffee price, but also far away. There is a possibility that we may get a little correction towards the mea and the price may move closer to the above averages.
The price has also broken its symmetrical but slightly rising triangle which is represented by the yellow and red 50 and 100 day moving average. The full projection of this triangle could push the price towards the support area mentioned below.
The MACD and the RSI are trading in line with the price action which means the bias stays towards the downside.
Important zones
167- 171 support
198- 203 resistance
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
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