Coffee closed sharply higher due to short covering on Wednesday as it consolidated some of Tuesday's decline. Stochastics and the RSI are bearish signalling that additional weakness is possible near-term. Today's rally led to a close above 20-day moving average crossing and the high-range close sets the stage for a steady to higher opening on Thursday. If it extends Tuesday's decline, the 50% retracement level of June's rally crossing is the next downside target.