Following Coffee
I’ve written about coffee quite a bit over the past few weeks. It’s been a topic of my posts because of what seemed to be an interesting opportunity to get long coffee in the near future (a couple weeks back). It was something I stumbled onto in my nightly research. I was a little surprised by how hard coffee bounced today. And, I wanted to see if I had missed the boat on that opportunity. Let’s review.
So, the forecast suggests two interesting timeframes to be looking to get long coffee between now and year end: October 26th and November 19th. These are highlighted in the chart below.
Now, let’s take that to the chart.
What’s the chart saying? First off, look at that beautiful coil. We have definitely penetrated to the upside. Can we hold it? Good question. Only time will tell. But, look at this historical resistance around 144.25. If price can hold above there, I’m a believer. You see my target up towards 160. There is potential for a solid trade as this price action unfolds. Just keep the risk reward ratio in mind and don’t be a chasing fool. Forecasts have to take a back seat to price action. They are only guides to get our thinking started. Price action is the authority. Watch this unfold. And as always, see the disclaimer. Futures are high risk. I am not offering any trading advice and take no responsibility for your actions. This is strictly for educational purposes.
