Daily Analysis

December Coffee

December Coffee finished lower for the trading session while continuing to feel pressure from a closing price reversal top on the daily chart and finishing near a key retracement point on the weekly chart.

The weekly chart indicates the market is trading inside of a spiraling pattern created by a series of lower tops and higher bottoms on the weekly chart.

This lower top/higher bottom pattern has been created by progressively narrowing ranges between 112.00 to 146.45.  All of these prices center on a retracement zone at 129.30 to 125.20.  This zone will control the short-term direction of the market.

On the daily chart, the short-term range is 119.90 to 138.30.  This range forms a retracement zone at 129.10 to 127.00.  This zone combines with the weekly chart to create a price cluster at 129.30 to 129.10.   

Watch for this zone to act like a pivot:  bullish above and bearish below.