Coffee Stays Below the Averages
Coffee cooled off today, with the December contract dropping 2.8% to finish at 125.90. The Coffee market has seen considerable volatility lately, with prices falling nearly 9% over the last four days – the high just a few days ago (10/14) was at 139.42.
Looking at the chart, Coffee is currently below both its 15- and 25-day moving averages, and has broken through the 128 support level established on September 30th. The next level of support below this is around 120. In order to get to that level, it must drop another 5 points, or 4%. Today the low was put in at 122.3, so it's not out of the question.
Mike Tosaw, Director of Education
