Coffee Bulls Have Upside Technical Momentum

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
coffee-march2008.gif
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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