On Friday the September coffee contract closed nearly unchanged at 1.2840 down 45 points. The contract is now 475 points off its low and has now developed two spinning top candle sticks in a row . The market is looking for direction.
I have attached a rather detailed market report. Although the large amounts of shorts suggest the opportunity for a market rally as the traders cover their shorts, there are other indications that the market will go down.
The market remains below the 40 and 60 day moving averages and the technical tread is still down. There are also some reports that the current crop in Brazil after the drought is bigger than expected, thus putting additional pressure on the market.