In yesterday’s free live trading webinar, I discussed July Coffee. I used the daily chart to show how the market had posted a new low close of 255.95. on the projected reversal date of June 1, 2011. The market reversed on the following day–the “trail” day”–and closed higher. This price action formed a peg-leg pattern and possible swing pattern failure. In the webinar, I went on to illustrate how a swing pattern failure can lead to a significant price move in the opposite direction. The current price action in July Coffee is providing a very good example on what I talked about. After opening steady and trading slightly lower early in the session, Coffee reversed and surged over 1,000 points higher and traded above the prior swing high. This is setting up a possible TR pattern sequence and trend shift. I will keep you updated with any new swing trading signals in the next issues of the TMV Swing Trade report.
