Thursday, June 9, 2016

Mailbox: Time To Buy Coffee?

Mailbox
Question:

Hi Eric,

I hope you are well.

The expected rally in coffee is this or would rise more?

I want to consult you on that platform I can do trade especially options.

Best regards.

Lurvin.

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Response:

Coffee remains in consolidation/profit-taking against the down, often a precursor to a change of trend, through 05/31/16. While this could change to a focused bull opportunity through 06/10/16, traders cannot anticipate it.

BULL trends in price and leverage would turn coffee into a focused Q3 bull opportunity (see COT Matrix). Bullish traders seek focused bull opportunities; the higher the better. Coffee's Q3 focused bull opp, for example, is not as good as higher energy Q2 or Q1 ones. Followers of the COT Matrix, however, understand that all focused bull opportunities demand respect from bears. Experience teaches that.

If coffee takes out the trading range as discussed in the latest Coffee Chart, it would not only attract attention but also likely generate a focused bull opp.


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