Pro Charts: Stocks & ETFs

Coffee Into Major Support, Bounce Likely Per Chart

Updated: May 06, 2024 | Published: May 05, 2024
Verified Investing
By Verified Investing
Coffee Into Major Support, Bounce Likely Per Chart

The commodity coffee has collapsed over the two weeks from a high of $250 to $200. This 20% drop has brought price back into major technical support as seen in the chart above.

This implies that coffee should bounce in the near-term as Verified Investing issues a bullish bias on the commodity for the next week or two. A bounce is expected of up to 10% in the near-term before price action will have to be re-evaluated.

Commodities have seen epic moves in early 2024 only to begin correcting. This is a normal reaction to the big move higher as profits are taken. The key is, do key supports hold and do prices go higher later this year.

Ultimately, price will be dictated by inflation, money printing and other economic factors.