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<\/p>\nIt\u2019s time to buy coffee.<\/p>\n
I know, I know, I can already hear the complaints\u2026 \u201cThe stock market is running all over the place and the best you can come up with is coffee?\u201d<\/p>\n
I said the same thing to myself 20 times before deciding to write about this.<\/p>\n
But here\u2019s the thing\u2026 In terms of risk\/reward, the current setup in coffee is extremely low-risk and the potential reward is huge. It is the best-looking trade setup in the market this week.<\/p>\n
The last time the chart of coffee looked the way it does today, the price popped 20% higher in two weeks. It gained 60% in seven months.<\/p>\n
Take a look at this weekly chart of coffee\u2026<\/p>\n
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You can see the bullish falling wedge pattern that formed in late 2015\/early 2016. While the price was falling, both the\u00a0MACD momentum indicator<\/a>\u00a0and the\u00a0Relative Strength Index (RSI)<\/a>\u00a0were rising. This sort of \u201cpositive divergence\u201d is an early warning sign of a potential change in trend. And it led to a significant rally in the price of coffee for most of 2016.<\/p>\n Coffee is set up the same way today. The chart is forming the same sort of falling wedge pattern. And there\u2019s positive divergence on the MACD and RSI indicators.<\/p>\n Keep in mind, though, this is a weekly chart. The patterns tend to play out over the course of several months. So, I expect the price of coffee will be higher by summertime than where it is today.<\/p>\n And, based on the look of the daily chart, that rally could begin soon. Take a look\u2026<\/p>\n Coffee is approaching the resistance line of the falling wedge pattern. If it can break out above the line \u2013 by closing above $1.25 per pound \u2013 then we could see much higher prices over the next few months.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S. <\/strong>Just yesterday in the Delta Report<\/em>, I recommended a coffee trade to my readers. If coffee rallies like I expect it to, they\u2019ll book a nice return in the next few months.<\/p>\n And there\u2019s still time to get into this trade, if you act now\u2026<\/p>\n To learn more about becoming a Delta Report<\/em> subscriber, click here<\/a>.<\/p>\n Today, more trading stories, responses to Jeff\u2019s Delta Direct<\/em> posts, and thoughts on the new Fed chair\u2026<\/p>\n Just a note to let you know that during a previous huge market crisis I panicked and as a result lost $40,000 in 1 day when I sold all my positions. However I am happy to let you know because of the way you have explained things.<\/p>\n Since subscribing to your service, I just held tight on everything and waited for how you reacted to the market. I am hoping that this year I will make enough in the market to perhaps be able to subscribe to your service again! Thank you for your recommendations and advice!<\/p>\n \u2013 Ray <\/strong><\/p>\n<\/blockquote>\n <\/p>\n I love Jeff’s commentary each day, but this morning he’s getting overexcited about “the possibility of adding some short exposure.”<\/a><\/p>\n \u2013 Andrew <\/strong><\/p>\n<\/blockquote>\n <\/p>\n![\"\"](\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/sites\/19\/2018\/02\/Screen-Shot-2018-02-15-at-9.06.15-AM.png\")
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