December Coffee futures have spent the past week trading between old resistance/support at 122.00 and the 50 day moving average on the top (the green line on the chart below). Taking a short sale when it finally broke under 122 support was a successful trade today.
Note how 122 served as resistance in August and September, and the return to 122 showed it to be support during the past week. for the past two days it has been trading within Monday’s range-note how momentum came back up to zero, which put the short sale on the radar for today. With a sell stop working under 122, I was stopped into the short sale when that was taken out. Now that we’re short, profit objectives are 119 (roughly the middle of the August/Sept. congestion) then 11525, the double bottom from September.
(click on chart for larger version).
