Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
As expected, after reaching the very obvious 1,40 target, yesterday we saw arabica market attempting to entering into correction phase for its short term upward trajectory
This attempt was short lived and generated bids at higher levels than those that one could assume are flagged for tactical entries.
At first glance, this kind of exhibition comes from a very solid market.
But, due the current nature of the rally, and the obvious correction needs after weeks of upside working
¿Could one argue that the quick appearance of buyers, willing to take positions near the highs, come from late intentions of operators who did not detect the bullish opportunity at the right time?
If so, these late positions will proof wrong soon, mutating quick into additional selling pressure for a market that is ready to correct down.
Or maybe not. Perhaps late buyers are right and market will break 1,40 and continue higher, without that rest that looks necessarily.
It is hard to say. At this point the coin is in the air.
The answer will be evident in a couple of days, 140 is the key point. A strong upward move above it, will open the door for more progress, and prove the rightness of recent buyers, but in case market fails to achieve such penetration, a quick and volatile fall will be seen.