Coffee closed higher due to short covering on Thursday as it consolidates some of this week's decline. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, the 50% retracement level of the May-June rally crossing is the next downside target. Closes above the 20-day moving average crossing would temper the bearish outlook.