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Coffee Weekly Forecast - 26/01: Highs Reached (Chart)
(MENAFN- Daily Forex) Speculators who were counting on their downward perspectives in Coffee Arabica to finally pay off, instead were treated to another pop higher in the price of the commodity. Not only did the value of Coffee Arabica escalate, but it broke record highs and the 350.00 mark saw sustained trading above until seeing a slight reversal took place on Friday and a close around the 347.75 ratio happened. If there are any traders left in Coffee Arabica that want to bet wildly on downside momentum seeing sustained momentum downwards, please be careful. There may be a hedge fund or two with deep enough pockets to wager on a big move lower in the mid-term that can tolerate the record high prices now being seen, but day traders who have insisted on being sellers have likely been wiped out by Coffee Arabica. The soft commodities of Coffee Arabica and Robusta, and Cocoa continue to take no prisoners.Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Movement Higher and Not Standing in the Way of TrafficWhen Coffee Arabica opened for trading on Tuesday of this past week, buyers showed instant interest and the price of the commodity was soon above the 336.00 mark. The ability of Coffee Arabica to produce buying power after a reversal lower to the 326.00 should not have surprised many people. Wednesday's low quickly faded from memory when trading power grew and Coffee Arabica started to flirt with and climb above the 340.00 ratio.Early trading this past Thursday soon saw Coffee Arabica within record values seen on the 10th of December, this as values above the 349.00 mark were effectively traded. And while a reversal lower did occur and briefly went below the 340.00 level, prices soon began to see another trend emerge upwards. Friday's opening saw the 343.00 mark prove durable as support and buying kept being seen and the 350.00 realm was surpassed and the 351.00 began to be flirted with as Coffee traders certainly knew they were making history via the lofty prices Alive and Well in Coffee ArabicaHigher realms in Coffee Arabica may feel unnatural to some day traders, but they should remember speculative fuel is being created by large players who continue to show they have the power to drive the commodity higher. Betting on downside while it may appear logical, may continue to prove wrong. The price of Coffee Arabica remain within a long-term bullish trend and its ability to create new record values this week clearly means it should not be treated with disrespect.
- If a trader persists and wants to look for selling to occasionally test support levels that is one thing that can be done, but to expect a solid erosion of price in Coffee Arabica for the moment seems likely a fast way to lose money.
- Wagering on upwards momentum continuing may seem like it is risky too, and it is, but trading Coffee Arabica for smaller traders is all about riding on the momentum created by large players.

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