Friday, May 17, 2013

Is it finally time to go long coffee?

If you have been following us you know we have been adding to our long coffee position using ticker "JO". Are you on board or do you see coffee going lower. Coffee bears have gained back some momentum the last couple of days. Today we've asked our friend Jim Robinson at to provide his expert analysis of the coffee trade to our readers. Each week he'll be be analyzing a different chart for us using our Trade Triangles and his experience.....

Coffee could be turning bullish, so this week let's take a look at the Coffee Chart. With Futures we use the weekly MarketClub Trade Triangle for trend, and the daily MarketClub Trade Triangle for timing.

*    Coffee put in a weekly green Trade Triangle on what looks to be the breakout to the upside of the base.

*   Coffee put in a daily red Trade Triangle on what looks to be a test of the base.

*   If Coffee trades higher and puts in a green daily Trade Triangle odds would be with bulls.

The MACD made a bullish momentum divergence at the lows and is currently on a buy signal, which supports the bullish case for Coffee as of right now. If Coffee were to continue lower from here and puts in a red weekly MarketClub Trade Triangle, then odds would not be with the bullish case for Coffee any more.

So even though it looks to be a big bullish opportunity for Coffee, we'll just have to sit back and let the market tell us what to do next. So this looks to be a great Chart to Watch right now, as exciting things could be happening on the upside in Coffee soon.

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