Friday, September 13, 2013

Coffee Holds Above 20 Day Moving Average....you in?

Coffee prices sold off 60 points this Friday afternoon at 120.00 but up about 200 points for the week still stuck in a 17 day extremely tight consolidation with very little bullish news to prop up prices as massive supplies worldwide are keeping prices right at 4 year lows.

However we are sticking our neck out here and are advising traders to get long this market placing a stop loss at 114 risking around $2000 per contract as coffee is now trading above its 20 day moving average but below its 100 day moving average with outstanding chart structure & extremely low volatility.

Some of the best markets I’ve ever seen have been the ones that have no reason to go up or down and this market has absolutely no reason to move higher with massive supplies across the globe & crops doing extremely well at this time, but this news is already priced into the market and one day this market will start to turn to the upside it’s just a matter of when.

TREND: MIXED – CHART STRUCTURE: EXCELLENT

Don't miss the second video in this weeks series "The Truth about Trading the Trend"


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