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ICE July Robusta coffee futures prices gap up to target $2,000

ICE July Robusta coffee futures may gain toward $2,000 a ton towards the 38.2 percent retracement level based on the downtrend from early March 2017 to present . A break above $2,000 might then spur a rally toward $2,042, the 50.0 percent Fibonnaci retracement level.

Basing on technical analysis, I could see robusta coffee futures prices target this level in the middle of May. If you look at the momentum indicators, they are trending higher. If that holds, we could see prices build on current support levels, targeting March highs ($2,215) in the several coming months.

Today's open price makes a big gap, so I expect that after reaching the psychological level of $2,000, ICE July Robusta coffee futures will get a correction to $1,945 to fill up the gap theorically. After that, the market is expected to rebounce for the next uptrend.

Note: The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Non-Commercial sector of this market decrease their net long position within this market by 39.47% during the week of trade leading up to Tuesday 25th. April; to register a net long position of 28,311 lots equivalent to 4,718,500 bags.

By Jack Huyn

Please be informed that information I provide is for educational purposes only and not intended as investment advice. Information and analysis above are derived from utilising methods believed to be reliable, but I cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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