Artem Voloskovets
⬤ Coffee futures are showing early stabilization signals after recent pullback, holding near a clearly defined horizontal support zone. The market is attempting a small pivot with price action forming what looks like a developing double bottom. Sellers have struggled to break below this level, hinting that downside momentum might be losing steam.
⬤ The first key signal came with a hammer candlestick forming right at the support area. This pattern usually means buyers are stepping in after selling pressure. The next session showed upside follow-through, backing up the idea that demand is building. Futures are now trading around the mid-350s after bouncing from lows near the low-340s, though still sitting below the 50-day exponential moving average.
⬤ While these signs point to improving short-term conditions, the bigger picture is still developing. Overhead resistance remains visible, with previous selling activity appearing near higher levels. Recent gravestone-type price behavior near the moving average shows sellers have defended that zone before, suggesting any near-term gains might be more of a relief bounce than a full trend reversal.
⬤ This setup matters because coffee futures have seen high volatility lately, making short-term momentum shifts worth watching. If support holds and buying interest grows, focus may shift to whether prices can test nearby resistance. A break below this base would mean selling pressure is still in control. Right now, coffee futures sit at a short-term turning point, with the next few sessions likely to reveal the direction ahead.
Artem Voloskovets
