Strong Coffee Rouses Bulls from Slumber

The Commodity Specialist view - Until recently the 2010 price action in ICE Coffee was relatively uninteresting, with bears looking a real threat. However, the recent surge upwards has brought the chart to life, with the probability of higher values to come.

• COFFEE MONTHLY CHART - CONTINUATION: In the Commodity Specialist Guide we have taken a step back to look at the major 1997/2001 downmove. With the 169.60 Feb-08 peak under attack the immediate level higher is the 180.00 50% mark (see also Daily chart). Temporary resistance around here would not surprise, but we think the chart should push higher in due course.
• DAILY CHART – SEP-10: Violation of the 153.40 Dec-09 high has quickly led to a move towards our first Fibo projection at 179.00. Pullbacks are assumed to be temporary, the 153.40 area offering first support – ideally this will hold in order to preserve maximum bull momentum. Back-up support comes from the lower 142.75 Apr high. We have marked in a higher Fibo projection around 189.00, a later target.

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