- Coffee Arabic began the last week of trading near 409.00 USD, and then went into this weekend near 412.50 which is a profit of 3.50 USD via the market price.
- But Coffee Arabica as its traders know had a much more eventful week than only a few dollars gained.
- Coffee Arabica actually went to an exuberant high of nearly 435.00 early last week. Yes, the price of the commodity did see selling after the apex and a low of nearly 407.00 on Tuesday, but this was followed by other violent twists and turns.
- Thursday saw Coffee Arabica back above the 432.00 price for a handful of hours.
What Coffee Arabica has in store for traders this coming week is likely more danger. The price spread in Coffee Arabica has grown frantic and traders not only need to use risk management efficiently, but they might also want to keep their heart medicine nearby. Fast reversals within record values has become routine, but this doesn’t mean anyone should be comfortable.
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Record Values and No Fear of Heights
The ability of Coffee Arabica to stay above 400.00 USD this past week and attain apex heights needs to be given respect. Coffee Arabica as it showcases a wide price range, has not shown a real desire to suddenly sink into depths or even support levels which would have been considered wildly high prices at the end of January. For a reminder Coffee Arabica was near 360.00 USD at the end of January.
As people point fingers at the record values in Coffee Arabica, shows no fear of heights. It is not enough to remind speculators the price has more than doubled the past year. The price velocity upwards in Coffee Arabica still is dangerous for short-term wagers by traders without enough money to handle the exposure to the rapid changes in value.
Record Prices and the Week to Come in Coffee Arabica
The price of Coffee Arabica is going to face a downturn, but the question is when. Standing in front of the upwards momentum at this point and looking for a fall is more than dangerous. The ability of Coffee Arabica to remain above 400.00 USD should be used as a warning sign by speculators that sentiment is still being controlled by large players who seem to believe there are higher values yet to achieve.
- All traders in Coffee Arabica need to be careful because if and when the price of the commodity starts to come down it might be fast.
- However, for the moment simply using quick hitting trades and trying to use the power of the trend is important.
- How high can Coffee Arabica go? Last week’s ability to climb over 430.00 should be enough to demonstrate that its highest values may not have been seen quite yet.
Coffee Weekly Outlook:
Speculative price range for Coffee is 388.00 to 435.00
Are you really going to bet against Coffee Arabica? The 400.00 level may look like an enticing short-term speculative target, one that could be achieved quickly if the commodity builds enough selling pressure. However, the price of Coffee Arabica for over a year now has shown the ability to use perceived technical support and launch higher. Trading early this week should be monitored as Coffee Arabica opens and if the price level of 420.00 is seen upwards, this may be a sign that buying momentum is erupting again.
The spread in Coffee Arabica is wide, the velocity of the commodity is dangerous, risk management is essential. Betting on new record highs is too ambitious for most day traders. But looking for upwards momentum to retest prices between 415.00 to 425.00 depending on the size of a wager and leverage used may not be crazy. Trading Coffee Arabica needs to be done with the realization the market is likely more powerful than your bank account if you are a speculator. Money can be made, money can be lost.
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