Need to Know: Coffee Tendencies

Coffee spends very little time in extreme overbought terrotory.  It’s best to monitor positions and take profits after explosive moves.

1. Market Description

Coffee Overview:

  • Symbol: @KC
  • Exchange: Intercontinental Exchange (ICE)
  • Big Point Value: $375
  • Trivia: It’s a seed not a bean

Coffee is best described as a market with trending qualities but prone to volatile price surges.  It offers above average trading potential especially during adverse weather conditions in Brazil, Vietnam, Columbia and Indonesia.

2. Market Tendencies

There is overbought territory and then there is extreme overbought territory.  Extreme overbought territory is typically hit after explosive price moves.   Coffee is prone to big moves but typically reverses soon after entering these extreme levels.

Our Elastic Level indicators adjusts with markets over time allowing it to define overbought and extreme overbougt levels in bullish or bear markets.  As noted in the Elastic Level Tendencies chart (shown right), Coffee (KC) spends relatively little time once it enters extreme overbought territory.  This suggests its prudent to closely monitor long positions and take some well-deserved profits.

3. Market Description

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4. Seasonal Tendencies

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5. Market Description

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nulla placerat purus quis eros imperdiet placerat. Praesent in ligula egestas, lacinia nisi et, consectetur nunc. Cras viverra porttitor ornare. Nam scelerisque mattis purus et euismod. In hac habitasse platea dictumst. Duis maximus risus tincidunt nunc mattis molestie. Mauris lorem quam, laoreet sit amet mi ac, tincidunt sollicitudin risus.