Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Very heavy market. Approaching a potential reversal back to the sell side by the sytems, though it's clear there is some group actively selling this morning.
12840 =1.618% of yesterdays TR. Now below that level, and searching for better support. I do think we should try and consolidate some of these early losses before possibly attempting a push towards 12700.
ZH weakness yesterday was one of a few possible warning signs. Also, Keep in mind, the market failed the 20sma yesterday, though I did not expect the market to gap down this morning. On a 60 min. time frame, the market was flirting with a trend-line, which for today would have come in around 13025. Any attempts to fill the gap likely stall up in that area.
X options expire Friday so we may remain trapped between 12750-13000 until expiration. Personally, the market is purely trading on the techs. The fundamental picture has been widely discussed and we get varying degrees of certainty on each side. I will re-iterate my thoughts that these day to day moves our driven by the technical nature of the market. We have yet to get a market moving shift in the fundamentals. Weather is a factor but for the most part the reaction is a knee jerk . It certainly requires monitoring at this point and may become a driver, but for now too much uncertainty and conjecture.
Just my Wednesday morning thoughts.