Coffee closed higher due to short covering on Wednesday as it consolidated some of its losses of the past two days. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI have turned bearish signalling that a short-term top has likely been posted.
Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. If it extends this year's rally, monthly resistance crossing is the next upside target.