Coffee futures prices forecast november 2012

Coffee futures prices forecast november 2012 : Coffee is a commodity I consume every day but only trade every now and again. Lately, though, coffee prices have moved lower by 16% since the beginning of October and as seen on the chart below, have been sideways for the past six months. Though past performance is not indicative of future results the movement suggests selling near $1.85 and buying near $1.60 has worked over this time frame.

Near-Term Pricing
I expect to see prices appreciate in the coming weeks and have advised clients to start gaining bullish exposure in March contracts. A base appears to be forming in recent sessions and prices are extremely oversold. Not to mention in the roll volume has started to pick up in the March contract. My target is a return to the 100-day MA around the $1.70 level in March futures. In March options traders have just under three-month's time.