July Coffee continues to push higher, surging over 2400 points in the last four days. Explosive markets can offer huge opportunities or huge risks. In this case, price has exceeded time as Coffee reached the first reaction line target objective (148.50, on Friday, June 11. 2010), before settling back to the up-sloping median line at the close of Friday’s session. The median line proved to be another launching pad as the rally continued as the new week began. This type of price action presents a dilemma for traders as they try to determine where the hysteria will end and, will the market tumble as fast as it rallied. Therefore, how do they capture the most amount of gain without taking unnecessary risks? We’ll see how the “action-reaction” unfolds in the next few days.
