Coffee futures continued rising last week as the September contract opened last week at $1.76 per pound and closed the week at $1.8610. Initially we saw a short covering rally that was triggered by the weather that looks to have started mid-June as coffee prices moved up from $1.50.
Looking at the daily chart below, coffee’s current trend strength is very strong with ADX at 53. MACD is bullish but is dropping a bit of divergence and Stochastics are overbought but look to want to correct as the market is dropping below 185 today.
On the weekly chart below we see ADX dropping after reflecting a very strong trend down and DI+ crossed up over DI- the last week in June. Stochastics on the weekly chart are just entering overbought territory.
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