March Coffee closed at the intersection of the ascending median line and the descending reaction line (235.15) on the December 29, 2010 reversal date. This price action has completed the “action/reaction” cycle on the reversal date, projected several days earlier. The ‘trail day”–the day following a reversal date–can be a very good directional indicator, depending on the direction of the closing price. This price action is completing the market reversal and offering a potential swing trading opportunity.
