Coffee time !

I have been watching Coffee for the last 2-3 months. The downtrend looks very tired in the daily chart. I think it is a very good long potential from here. To my experience, the channels are broken 80-90% of the time at the 4th hit. And here we are on the 4th! It is safer though to wait until it breaks the channel. Also note the positive divergence shown by the blue arrows.

Supporting this long idea, the potential for higher prices is enormous looking at the weekly chart supported by the massive positive divergence on MACD. This 10 years support line is very strong and I would be surprised if it is broken considering the falling daily chart channel looking exhausted here.

All in all, both coffee and sugar from my previous post confirms higher prices which supports the secular bull market in commodities.