Chart to Watch - Coffee

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We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of Coffee. (NYBOT_KC.Z13.E).

I hope you are having a GREAT week !!!

This week let's take a look at the December Coffee futures chart.

We use the weekly MarketClub Trade Triangle to tell the trend when trading futures and the daily MarketClub Trade Triangle to time the trade.

December Coffee is on a weekly green MarketClub Trade Triangle and a daily red MarketClub Trade Triangle which is just exactly the way we want the Triangles to line up for a buy setup.

If December Coffee trades higher from here and puts in a daily green MarketClub Trade Triangle that is the place to go long because the weekly and daily Trade Triangles will then both be pointing up.

If a long trade does happen in Coffee, then the stop if wrong is if Coffee trades lower and puts in a red daily Trade Triangle.

This is a great way to trade because we are getting long with the trend and will catch all the big trending moves when they happen, while cutting our loses short if the trade doesn't move our way.

If Coffee continues lower from here and puts in a red weekly Trade Triangle then the long trade is off, which is fine, as we are following what the market is telling us, and lower prices from here would cancel the current long trade setup.

Coffee is a Chart to Watch right now, because a big move higher from here could be about to happen.

Thanks,
Jim Robinson
Profit Trading.com

4 thoughts on “Chart to Watch - Coffee”

  1. I tend to agree with you Jim. Your analysis makes a lot of sense, so I will be keeping a close eye on this... until my deterministic crystal ball arrives in the mail! 🙂

  3. Good morning,
    the feature article of this blog area, attracted my attention and prompted me to send this review due to coffee farmers nothing would be more comforting that technical analysis demonstrated here with the hope of changing trends in the coffee market. As a modest player and unifying information of the coffee market in my day to day, the level of market fundamentals, however, supports and even price rises in recent days in my humble opinion, would have been the result of uncertainties climate in the first place plus resistors background around U.S. $ c120/lb second, and when looking from the point of view of market fundamentals, the possibility of good flowering next season (from September to October) in Brazil (world's largest producer), good expectations for Vietnam (second), Colombia and other countries, this technical analysis could not be confirmed although it would be the best of all worlds for coffee farmers. We do not issue the above comment to question the contrary, we know the expertise of professionals in the futures and options and the various methodologies developed to predict market behaviors by technical point of view and especially from experts like profittrading.com, I also understand how complex and how often at the primary market of the product we do not understand how the market is directed to other sides but as a professional who also acts in the agricultural area of ​​competitive intelligence in the coffee market for my company, I always consult quotes. ino.com and their information including financial news, market and technical considerations, but my goal with the comment above like a modest and curious observer of the coffee market is especially to consider if in a site of technical excellence in the field of futures and options like yours, the inclusion of information of competitive intelligence in specific markets would not be a market differential weight for INO Market Club. Excuse our english errors.

    1. Marcus

      Hi !

      Thanks for your comments, that is all very interesting.

      Even if Coffee does continue lower from here and puts in new price lows for this move down, I really think the Coffee market is getting close to a low from which there will be a mjor rally.

      Coffee is going to be a very interesting market to watch right now.

      If you look at a longer term chart of Coffee going back to were Coffee was trading in 2005 to 2010, it is at a possible long term support area.

      Thanks !
      Jim 🙂

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