Coffee is for Closers

John LunneyGeneral Commentary

     Weekly wave structure appears to be in final stages of a b wave triangle. Daily structure confirms this setup as it points to the completion of an ending wave c diagonal coinciding with multi timeframe divergence in momentum. A fortification of 134.2 in the ensuing two day turns month positive. A hold above in the month of June engulfs May’s candle. Next level of contention comes in at 139.4. A firm rejection here could trigger a release for another leg lower. Level must be monitored. A more likely scenario calls for some reaction at this point followed by a thrust higher. Projections extend to 160.5. This objective should be achieved rather quickly. Perhaps within 4 to 5 weeks. Recommended strategy is for the purchase of July 135-155 call spread currently trading at 1.83 ( $686.25). The exit target is at +/- 17.00 ( $6375.00). This equates to an 9 to 1 risk/reward payoff and an 810% return on investment, minus all commissions and fees. A breakdown below 129.5 negates this outlook. It is always imperative to identify the price where an alternate scenario comes into play.

Every recommendation is based on a favorable return on investment. Certain setups will not meet this requirement and the ones that do take time to develop and evolve. As always discipline, risk management and patience are ones allies.