Good day to all and happy Friday… Today, I enjoy my coffee with a bullish attitude as I am expecting prices to bottom and turn around from 122-123 upwards.

#COFFEE #KC one more new low with a new divergence in the RSI would be a nice buy setup pic.twitter.com/ihgTa2j9qd

— Alexandros Yfantis (@alexanderYf) October 13, 2017

As mentioned in twitter (above), price followed the path expected and bounced according to the bullish setup we pointed out in my post in InsideFutures.com.

#KC #COFFEE time for coffee to bounce pic.twitter.com/KLCSfOJeSd

— Alexandros Yfantis (@alexanderYf) October 17, 2017

It was time for Coffee to bounce below 123.75. Coffee must break above the triangle/wedge pattern and if it does, I will be expecting it to reach the kijun-sen (yellow line indicator) around $132.50. A more optimistic target will be the underside of the Kumo at 135.

With Coffee, there is also some talk about Sugar… as both go together in real life… but not in the markets (at least the short-term).

Sugar (SB) has been trading mostly sideways for the last few days but why? Because if you look at the larger picture, I believe that Sugar is making a triangle pattern in a wave 4 position. This implies that there are chances favor a downward breakdown for wave 5 towards 13 and lower.

Support is at $13.90-$13.70. Resistance is at $14.30-$14.50.

Concluding, I’m bullish short-term Coffee and bearish medium-term Sugar. Let’s see how these play out.