From last night’s issue of the TMV Swing Trading report –
May Coffee – Short from 275.25 – exit price @ 270.70 – After the sell was triggered at 275.75, coffee traded sharply lower until it touched the ascending lower parallel line (green line). The lower parallel line is a line of support and the market responded with a corrective rebound. I recommended closing the short position at 270.70. (See Traders Network blog and Twitter comments). The daily chart still shows position bearish reaction swing, so I recommend re-entering the short position on a rebound to 273.50 or higher, with the stop loss at 281.75.
Coffee traded to a high of 275.40 overnight before turning lower and dropping below the lower parallel line support. The market swing pattern failure at 275.40 has help set the stage for further downside pressure on Coffee.
For updated information about this Coffee recommendation continue to check out the next issue of the TMV Swing Trading report. www.tradersnetwork.com.