Brewed for a Bounce: Coffee Rebounds Off 2024 Highs

In today’s technical piece, let’s take a look at coffee, which is presenting a compelling and well-defined setup. Since mid-February, coffee has been trading within a symmetric triangle pattern, outlined here with purple trendlines. This kind of formation typically suggests a period of consolidation before a directional breakout—and we got that breakout on April 4th, when the price slipped below the lower boundary of the triangle, triggering a technical sell signal.

However, the follow-through wasn’t particularly aggressive. Instead of a sharp drop, the price quickly found support around the $340 level, a red-marked horizontal area, which also happens to coincide with the highs of 2024. This zone acted as a key demand level, effectively halting the sell-off and initiating a rebound.

As long as coffee remains above this red support zone, the sentiment can be considered cautiously positive. The breakout from the triangle may have been a false alarm, and buyers might now be gaining confidence.

That said, a daily close below the $340 level would renew the bearish momentum and re-activate the sell signal. But for now, the base case is that the support is holding, and buyers have a slight edge.

Source: https://www.axiory.com/analytics/technical-analysis/brewed-for-a-bounce-coffee-rebounds-off-2024-highs