Coffee update: new lows, traders still very bearish.

coffee-plant-panama

Coffee plant in Boquete, Panama

 

Positive divergence on RSI though. At this point, I would say the market can continue to make marginal new lows for a while, but that a significant rally may be imminent. This market has continued demonstrate how relentless a downtrend can be after a mania (mid-2010 to mid-2011). As often as not, such a market returns to the base from which the ramp started (around $1.30/lb in this case).

Image

 

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