Last Friday the July coffee contract broke through resistance at 1.30 and zipped up 350 points to close at 1.3360. Yesterday July tried to go higher and hit 1.3530 before closing down 90 points at 1.3270. Today July gapped down 70 points on the opening and continued down to close at 1.3010, down 255 for the day.
Technicians look at points of resistance as points of support if the market breaks through the resistance and turns south. For three days last week July tried to push through 1.30. On Friday it was successful. Today, as July was coming down it tried to break through 1.30, but could not close below it.
It will be interesting to see if support holds. If it does not hold, July could retrace it path to the 1.19/1.20 range where it will run into support