In last night’s issue of the Traders Market Views Swing Trading Report I made the following recommendation for Coffee. This morning I was asked “Why would you want to buy Coffee?”
September Coffee – Coffee closed below the prior swing low (156.85 on July 6th) on Wednesday, July 21st. After the close, I did a quick reverse/forward count using the July 6th and July 15th reaction swing and determined that Wednesday (July 21st) was also a minor reversal date. The swing low was followed by an up-close on Thursday and a close above the previous two closes. I consider this a bullish close and a confirmation of a longer-term bullish A-B-C continuation pattern. I show this pattern in “Unlocking Wealth, Secret to Market Timing” and illustrate how it can identify the center of a longer-term cycle. Buy the Coffee at 162.05 stop, with a stop loss under the swing low.
As I am writing this, Coffee is trading at 166.30…up 455 on the day. Check the next few issues of the TMV Swing Trade Report for further updates. If you are not a subscriber, sign up for the free trial.