Coffee May Really Be Bottoming Now
- Posted by Greg Harmon
- on April 12th, 2012
It looks like it might be time to start clearing out some room for a long position in Coffee. Back in mid March the story was not so clear and was still biased to the downside (link below). Now several weeks on, the signs of bottoming are building. The monthly chart below is only 5% from the channel bottom at 1.69 and the bottom of the Bollinger bands and less than 3% from the 50 month Simple
Moving Average (SMA). With a Relative Strength Index (RSI) verging on crossing into bearish territory and a Moving Average Convergence Divergence (MACD) indicator that is growing increasingly more negative, it could just blow through the channel bottom and look for support around 1.11. So it is not time to buy yet. But the weekly chart is showing signs of consolidation after bouncing on the 200 week SMA a month ago. The RSI on this timeframe is oversold but holding
while the MACD is beginning to trend higher. A move back over 1.88 would confirm a long entry. But that is not all. The daily chart is perking up as well. After breaking the trend line lower it has been consolidating between 1.76 and 1.88. The RSI is slowly trending higher as well.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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