March ICE Arabica (KCAH0) Coffee:
In the short-term, the immediate objective is a close below significant support at 140, immediately beneath current prices. This will signal a decline towards 136 –135.80.
Invalidation: A close above 142.50 would invalidate the short-term bearish outlook and would point to a rise towards 145 and then 146.95.
March LIFFE Robusta (LRCH0) Coffee:
In the short-term and in the medium-term, the outlook is bearish.
After a test of the upper channel line, LRCH0 is pointing lower, and is positioned to decline towards the lower channel line with prior support around 1350, then in the 1337-1334 area, followed by 1327.
Invalidation: a close above 1390 would point to a challenge of the upper channel line. Then a close above that line (1415 on 01/18 and 1413 on 01/19) would be bullish.