$KC #Coffee – swing traders’ dream

Coffee has been swinging from oversold to overbought and back again on a consistent basis for more than a year.

Last year, January through December, was spectacular with more than a $30,000 gain on margin (current margin requirement is $3,100 per contract).  This year not as much but still great –$10k plus so far.

Should be noted that the commodity may be in transition.  It appears on a longer term basis coffee has moved from bearish to generally bullish with what appears to be no less than a rounding bottom on the daily chart.

The commodity’s active contract is overbought and can go higher but that trade is on so not worth chasing.  The next trade will be a short.

(for a closer look at the swings right click on the chart)

Coffee_2016-08-24_0852

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