Arabica coffee just went vertical after that Colombia tariff flip

[TrendPulse]

Honestly guys, seeing Arabica coffee prices scream toward an ATH after that Colombia tariff drama is just another day in the wild world of soft commodities. I’ve been around this block enough times to know that when a major political threat like economic sanctions or tariffs gets pulled off the table, the relief rally is usually violent. I remember back in the day trying to short into a similar trend because I thought it was overbought, and let me tell you, that account blew up faster than a cheap espresso machine. NGL, the FOMO right now is real for a lot of people, but you really have to be careful with your entries when we are sitting at record levels.

If you’re thinking about jumping in now, please keep your risk management tight because these moves are driven by sentiment as much as supply. I always tell people that if you didn't catch the initial breakout on the news, wait for a consolidation or a healthy retrace before you try to scalp more upside. The spread on coffee can get nasty when the market is this thin and excited, so don't let a sudden wick destroy your margin. I’m currently sitting on my hands and watching for a better entry point because chasing a vertical line usually ends in tears, even if the fundamentals look bullish with Colombia off the hot seat.

Anyone else holding long positions or are you all waiting for a dip before entering?

 

[Zakami Ng]

Man, tariff news always wrecks the charts when you least expect it. I pulled up the 4-hour on Arabica just now and RSI is screaming overbought at like 82, completely pinned to the moon. MACD is way overextended too, histogram bars are just getting massive. Usually when it goes vertical like this on headline news it leaves a nasty liquidity gap underneath. Not touching this long here, waiting for a mean reversion back to the EMA before I even think about a short scalp.