Coffee is trying to break above the channel resistance
The Monthly Coffee chart shows that the instrument is testing Andrew’s Pitchfork downtrend channel dating back from 1986. This retest of 195 is being rejected for now and we could have a swing range between 90 and 195 continuations and we do not have a confirmation of upside extension.
On a Daily chart, we can see an uptrend downtrend Pitchfork channel formed and for the upside continuation we need to see a hold of the 173 Median line. A bounce from the Median line is required for the upside reversal and another upside swing to test 190. A break below the Median line will lead to a bigger pullback into channel support 150. Look for the long trade entries upon a bounce from the Median line 173 with the stop loss below 169.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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