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The long and short-term trend for Coffee remains down. Coffee has lost nearly two-thirds of its value since the highs in 2011 and is nearly a third lower over the past 18-months.
These declines have Coffee testing 2015 lows and a 14-year rising support line at (1). As it is testing these potential support lines, it finds itself at the apex of a falling wedge pattern as well.
With Coffee doing so poorly it is not surprising that Coffee bulls are hard to find (20% bulls). As mentioned earlier, the trend is down, which makes this support test at (1) very important. Should this support not hold, the trend could well pick up speed to the downside.
If support at (1) would happen to hold and resistance is taken out to the upside at (2), Coffee could perk up and experience a short-term counter-trend rally.
This price point for Coffee would suggest that volatility is about to perk up and the movement should create opportunities for bulls and bears.