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Arabica coffee pullback brings buying opportunity ​​​​​​​​​​


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Arabica coffee pullback brings buying opportunity

Arabica coffee pullback brings potential buying opportunity within long-running uptrend.

BG_coffee_beans_=34234234.jpgSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Wednesday 20 October 2021 

Coffee gets in on the inflation drive

Inflation is the name of the game recently, with commodity prices heading north as demand increases and logistical troubles drive costs upwards.

Coffee has similarly been on the rise, with Arabica up 89% over the past 12 months. Notably, this is a market which is likely to gain in price over time, as the effects of climate change gradually render many of the current regions unsuitable for production.

KC-Daily201021.pngSource: ProRealTime

 

In any case, the uptrend seen of late looks like a reliable one, with the pullback seen last week bringing a opportunity for the bulls. A break below $1.9257 brings an end to this reliable uptrend.

However, until that happens this current pullback looks to bring a buying opportunity for the bulls.

KC-4-hours201021.pngSource: ProRealTime
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