Commodity Futures Weekly Newsletter- For the week of May 19th, 2025
Coffee Futures trade another week below Resistance.
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A publication by the Research Team at Capital Trading Group: 800-238-2610
Softs
Coffee Futures
Coffee Futures trade another week below Resistance.
Coffee Futures continued to trade below Resistance at 418.90 this week. Until we see a Daily close above Resistance, a second A,B,C decline to come remains the preferred view.
Resistance at 418.90 remains well overhead
The Wave X high of 418.90 remains as Resistance for further declines. As it holds, a potential “double” zig zag is the view for more eventual downside pressure. The 3-wave rise from 323.90 remains labeled as Wave X, in the middle of another A,B,C move lower as shown on the chart in greyscale. As in ABCXABC. With RSI at 42.00, bearish momentum has gained steam by falling below the midpoint this week. This favors Wave A of the next A,B,C decline to below 323.90 in motion. Only a Daily close above 418.90 would mandate a revised view.
Conclusion
Continue to favor more downside from below 418.90. Conversely, if a full 12345ABC cycle is indeed complete as per the model, at 323.90, a new high above 429.95 would become favored on a Daily close above 418.90 in a revised view.
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Thank you!
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