Coffee: A Bitter Cup?

John Lunney General Commentary Leave a Comment

Yesterday’s post suggested a potential bottom was in place marking the low of an ending diagonal C wave. As discussed, the critical level to hold was marked at 129.50. The risk reward projection was estimated at a lofty 9 to 1 ratio. However, today’s action has closed below the critical level. Discipline must prevail. At this point structure needs to be reevaluated. Another low could be in the cards extending to the 123-122 level. It remains my view that an imminent low is just around the corner and that the ensuing rally should be swift. However, it is always best to change your opinion when the technical landscape has changed . Not doing so will bring an imminent end to your trading career.

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