Kimble Charting Solutions notes that sentiment readings on coffee indicate only 15% bulls, one of the lowest levels in years. This is the reverse situation of 2011 when coffee prices topped out after a two-year rally and a 200% gain. At the 2011 peak, coffee sentiment was 90% bullish.
“The bulls formed a crowded trade in coffee 18 months ago and got creamed,” Kimble said. “Have the bears formed a crowded trade and about to get creamed too?”
iPath Dow Jones-UBS Coffee Subindex Total Return ETN
