{"id":20370,"date":"2022-11-22T07:30:20","date_gmt":"2022-11-22T12:30:20","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20370"},"modified":"2022-11-22T07:30:20","modified_gmt":"2022-11-22T12:30:20","slug":"coffee-hasnt-seen-this-type-of-action-in-over-10-years","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/coffee-hasnt-seen-this-type-of-action-in-over-10-years\/","title":{"rendered":"Coffee Hasn\u2019t Seen This Type of Action in Over 10 Years"},"content":{"rendered":"

It’s time to buy coffee.<\/p>\n

The price of coffee has been falling for the past two months. It’s down 25% since late August.<\/p>\n

Now though, coffee is oversold and overextended to the downside, and it looks poised for at least a short-term rally.<\/p>\n

Take a look at this chart…<\/p>\n

\"Chart\"<\/div>\n

Coffee closed Friday at $1.51 per pound – down from the August peak of $2.40. That’s a 25% drop in just over two months.<\/p>\n

While commodity prices in general can be volatile, this degree of volatility is unusual…<\/p>\n

Coffee rarely trades more than 10% away from its 50-day moving average (blue line), before it reverses and heads back towards the line.<\/p>\n

The recent action, though, has pushed the price of coffee more than 20% below its 50-day MA. Coffee is now at its lowest price in 16 months. And it’s more oversold than at any time over the past 10 years.<\/p>\n

Coffee is approaching support at the July 2021 low near $1.47. And two of the three technical momentum indicators at the bottom of the chart (RSI and CCI) are showing “positive divergence.”<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In other words, as the price of coffee has been making lower lows, the indicators have been making higher lows. This situation is often an early warning sign of a bounce.<\/p>\n

So, it looks like coffee is setup for a “snap-back” rally.<\/p>\n

Traders can buy coffee right here at $1.51 per pound and set a stop on the trade just below the July 2021 low. If coffee trades below $1.45 per pound, then traders can exit the position for a small loss. But, if coffee bounces, then there’s a lot of room for it to run higher.<\/p>\n

The 50-day MA is an obvious upside target, as is the former support line – now resistance – at about $1.91. So, from a risk\/reward perspective, buying coffee here at $1.51 per pound risks losing $0.06 for a chance to make $0.40.<\/p>\n

That’s a good setup.<\/p>\n

And that’s why I just showed my paid-up Delta Report<\/em> subscribers how they could potentially make triple-digit gains<\/a> on this setup.<\/p>\n

It involves a unique “code” that anyone with a brokerage account can access. And it could help you double your money every single week of the year… With just one weekly trade.<\/p>\n

To learn more, just click right here<\/a>.<\/p>\n

Best regards and good trading,<\/p>\n\n\n
\"signature\"<\/td>\n<\/tr>\n<\/table>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

What commodities have you been following lately?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

This situation is often an early warning sign of a bounce…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-20370","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20370"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20370\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20370"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20370"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20370"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20370"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}