Coffee Bulls Have Upside Technical Momentum

By Jim Wyckoff on December 20, 2007 5:05 PM | Permalink | Comments (0) | TrackBacks (0)

March coffee futures are in a six-week-old uptrend on the daily bar chart and hit a fresh nine-week high of 136.00 cents on Wednesday. Coffee bulls do have upside near-term technical momentum and are looking for more on the upside in the near term. See, too, that the shorter-term moving averages I follow (9- and 18-day) are in a bullish mode as the 9-day is above the 18-day moving average.

click on the chart to enlarge

An early warning signal that the uptrend in coffee is losing steam and may be about to end would be if these two moving averages produced a bearish line crossover signal, whereby the 9-day crossed back below the 18-day moving average. See the solid technical support and resistance levels on the chart. Stay tuned!

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