Coffee alert: Strategic pullback to $285—Bulls eye the $320Coffee C FuturesICEUS_DLY:KC1!Kearabilwe-NonyanaThe current coffee price rise is attributable to the tightening of the global balance sheet, which is being driven by many reasons. The Hormuz Logistics Premium, owing to the need for ships to take a longer route via the Cape of Good Hope, delays shipments of Arabicas coming from East Africa and Vietnam by weeks, resulting in insurance premiums and shortage premiums for physical coffee held in North American and European inventories. Among others, some issues that are also affecting the market are the Brazilian Weather Volatility and Robusta Shortage from Vietnam caused by hot weather. With the RSI now at 43.94, Coffee is no longer in an overbought or oversold state. It has moved into a balanced or neutral zone, which is a classic consolidation area often preceding the establishment of the next dominant trend. This drop in the RSI confirms a mean reversion in price. I anticipate the 20 EMA will now serve as a key structural support level, acting as a magnet for the price action. Traders should watch the Volume Profile closely; look for volume to contract during this neutral RSI period. The ideal trigger for a new long position will be a subsequent sharp increase in volume, accompanied by a rising RSI. Trade recommendation : Direction: Long Entry Zone: 278.00 – 285.00 (Building positions while the RSI is below 50). Primary Target: 305.00 Secondary Target: 320.00 Stop Loss: 265.00 Technical scenarios Bullish Trigger & Indicators: RSI sustains above 70 + Daily close above 290.00. Potential Outcome: A rapid short-squeeze targets the 310.00 handle. Retest Trigger & Indicators: Price rejects 290.00 + RSI curls down. Potential Outcome: A tactical pullback to the 275.00 support zone. Consolidation Trigger & Indicators: Price grinds sideways between 280.00 and 295.00. Potential Outcome: Setting the stage for a late-May breakout to 320.00.