Coffee has, since November of 2016, lost nearly a third of its value. At the same time the long term trend in coffee remains down, as it has created a series of lower highs for years.
The Market Sentiment score ranges from 0 (most bearish) to 100 (most bullish), lower readings point, 25 or lower, to a Panic market, while higher ones point to an euphoric (bubble) market.
Bullish sentiment toward coffee has declined along with the price over the past 6 months, to the 29% level. In August 2016 the score ranged between 56 and 53%.
“The Art of Contrary Thinking” (1954) by Humphrey B. Neill concludes that “when everybody thinks alike, everybody is likely to be wrong.”
A market that sees such a low bullish consensus, if matched by a bottoming, stagnant, period is bound for a correction.
As point of comparison, the current sentiment level for the stock market is around 64, more than double coffee.