TradingView
0
All posts from TradingView
TradingView in TradingView,

Fear of shortage in coffee?

Fear of shortage in coffee?

Coffee ICEUSA:KC1!

I read some articles about possible shortage building in coffee production side compared to increasing global consumption. Some coffee experts and insiders like Illy already warn that the World will run into serious supply crisis within next 5-10 years, and that an additional supply equal to size of Brazilian production will be needed just to ballance the exponentially increasing consumption. Do they really see something strategic, or would they just like to see coffee prices a bit higher from multi year lows? I have no clue, so check the charts, as market will tell us the story in time.

Weekly:
- Bearish Ichimoku setup, price trades below all avearages. Strategic bears should have their trailing stop ard Kijun Sen + buffer, so probably in the 131-135 zone. Above 135 the bearish bias and trend would be questionable.
- Heikin Ashi weekly is counter bullish . If market will ever think or start to fear about a shortage, you will see something wild like in Jan/2014 - March/2014! So if you look to trade long based on a short squeeze, you have to first focus on a weekly close above Kijun Sen!

Daily:
- Well well, maybe the time for that reversal and short squeeze is getting close? Ichimoku setup is neutral now: weak bullish Tenkan/Kijun cross, Price above Kijun with future Kumo shade ahead.
- Heikin Ashi signal has been bullish short term. Price also reched the major bearish trendline! Actually the whole pattern may develop further to a bullish wedge.
- Key reversal area is 125-128. If price breaks above the trendline and Kumo, then probably the fear of short squeeze will send it a lot higher!
- As haDelta is not yet extreme, maybe it is not a bad idea to enter small long, however major bullish position requires the break of 128-130!