How Do You Take Your Coffee?

Since the beginning of the year Coffee ($KC_F, $JO) has had a massive rally. At one point it was up almost 90%. While I do not expect that to continue for another 90 % this year the spunky bean has been doing a good job of consolidating that move, and not giving it up. The consolidation can be seen in the chart below between the two blue lines at 1.70 and 2.10. What is interesting is that the 200 week SMA is flat and nearly bisects this range. This 200 week SMA is the long term moving average. That it is flat and price is consolidating around it should not surprise those that study price action. But which way will it go from here when it break s the consolidation? The shorter 20 week SMA is moving higher supporting a move higher but the 50 and 100 SMA’s are also running sideways. With an almost airplane landing look as it comes into support this may be a good place to take an extra shot for a move higher, at least to the top of the range. Use the bottom of the range as a stop loss for a low risk trade.

coffee

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.

____________________________________________________________________________________________________

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through May 2014 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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
Dragonfly Caps Blog