Post the sugar-rush of speculative buyers, the commodity sold off heavily, gapping through a short term uptrend-line. Now the commodity, represented by the ETF JO, looks to be stabilizing at the 38.2% Fibonacci level from the Dec 13 high. Moreover, we see a cluster of moving averages, including the 200day Exponential Moving Average at this level. Given the current risk-on, and dollar-down environment, coffee should be supported moving forward. This sell-off is overdone, and other soft commods such as Cocoa and Sugar have performed splendidly in recent weeks. There is no reason for Coffee not to do the same. I am targeting new near term highs, and a 141% extension from the previous rally off the lows.
Komentar:
Stopped out.
Trading ditutup: stop tercapai